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<\/figure>\n\n\n\nThe protest is particularly strong in Indore, where more than 125 trade associations representing around two lakh traders have backed the campaign. Traders in Bhopal and other parts of the state are also raising objections to the proposed changes. :contentReference[oaicite:0]{index=0}<\/p>\n\n\n\n
Why Are Traders Protesting?<\/strong><\/p>\n\n\n\n The central issue is the proposed 0.4% MDR on eligible person-to-merchant UPI transactions above Rs 2,000, which is scheduled to take effect from October 15, 2026.<\/p>\n\n\n\n Payments up to Rs 2,000 will remain free under the new framework. Person-to-person UPI transactions will also remain outside the MDR framework.<\/p>\n\n\n\n The charge is a merchant-side cost rather than a fee directly imposed on customers for making UPI payments. :contentReference[oaicite:1]{index=1}<\/p>\n\n\n\n Indore Traders Plan To Shut UPI For A Day<\/strong><\/p>\n\n\n\n In Indore, participating businesses have been asked not to accept UPI payments on September 23.<\/p>\n\n\n\n Several traders are also planning to cover their QR scanners and payment devices with black cloth as a symbolic protest.<\/p>\n\n\n\n The campaign is being supported by more than 125 trade associations, covering markets dealing in garments, groceries, jewellery, grains, plywood and other goods. :contentReference[oaicite:2]{index=2}<\/p>\n\n\n\n Bhopal Traders Also Raise Concerns<\/strong><\/p>\n\n\n\n The protest is not limited to Indore.<\/p>\n\n\n\n The Bhopal Chamber of Commerce and Industry has opposed the proposed MDR and plans to submit representations to the state and central governments.<\/p>\n\n\n\n Traders argue that businesses operating on thin margins could face additional costs when customers make larger digital payments.<\/p>\n\n\n\n Some wholesale, jewellery and automobile businesses say a substantial portion of their transactions exceed the Rs 2,000 threshold. :contentReference[oaicite:3]{index=3}<\/p>\n\n\n\n Government Says Most UPI Transactions Will Be Unaffected<\/strong><\/p>\n\n\n\n The proposed changes will not apply to every UPI payment.<\/p>\n\n\n\n The Centre has said that around 96% of merchant UPI transactions will remain unaffected. Payments between individuals will also continue without MDR.<\/p>\n\n\n\n This means the proposed charges are primarily focused on specified higher-value person-to-merchant transactions rather than UPI payments as a whole. :contentReference[oaicite:4]{index=4}<\/p>\n\n\n\n Petrol Pumps Also Plan Restrictions<\/strong><\/p>\n\n\n\n Petrol dealers in Madhya Pradesh have separately raised concerns about the proposed charges.<\/p>\n\n\n\n Petrol pump operators have indicated that they may stop accepting UPI payments above Rs 2,000 from October 15, when the new framework is scheduled to take effect.<\/p>\n\n\n\n Fuel transactions above the threshold are subject to a separate MDR structure under the proposed framework. :contentReference[oaicite:5]{index=5}<\/p>\n\n\n\n