New Delhi. Mobile phone retailers across the country are preparing to celebrate 'No UPI Day' on 2nd October. All India Mobile Retailers Association (AIMRA) has taken this decision in protest against the 0.4 percent merchant discount rate (MDR). According to the organization, on the day of Gandhi Jayanti, mobile shopkeepers will cover the UPI QR Code installed at their shops with black cloth and will not accept payment through UPI. Its purpose is to convey the concerns of retailers to the government and concerned parties.
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After all, about which fee are mobile shopkeepers angry?
According to AIMRA, the government has implemented a 0.4 percent charge on merchant UPI transfers above Rs 2,000 from October 15. However, person-to-person UPI transactions and small payments are excluded from the charges. Mobile retailers say that the implementation of MDR on the use of UPI for shopkeepers will have a direct financial impact on their business. The organization has also sent its representation to Finance Minister Nirmala Sitharaman regarding the same issue.
Which transaction is charged?
0.4 percent MDR has been applied on merchant UPI payments above Rs 2,000. Person to person i.e. P2P UPI transactions are excluded from this charge. There are no charges levied even on small payments. AIMRA has said that the new fee will be implemented from October 15.
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How much economic impact will there be on small mobile shopkeepers?
AIMRA says that this fee will especially impact the earnings of small mobile retailers. In a representation sent to the Finance Minister, the organization has estimated that small shopkeepers with a turnover of Rs 5 lakh to Rs 30 lakh every month through UPI may suffer an immediate net monthly loss of Rs 2,000 to Rs 12,000. According to the organization, this will wipe out a large portion of their net income. The total burden on small mobile retailers across the country is estimated to be around Rs 40 crore per month and around Rs 500 crore annually.
What is the estimated impact according to AIMRA?
A retailer with a monthly UPI business of Rs 5 lakh may face a monthly loss of around Rs 2,000. The loss of a retailer with a monthly UPI business of Rs 30 lakh can reach up to Rs 12,000. The total burden on small mobile retailers is estimated to be around Rs 40 crore per month.
What is the real demand of AIMRA?
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AIMRA says that its protest is not against UPI or Digital India. Tarvinder Singh, vice president of the organization and president of Delhi-NCR region, said that his concern is about the additional financial burden on merchants accepting digital payments. He says that if Digital India is to move forward then digital payments should remain affordable for the entire retail system.
What is the demand of AIMRA?
The organization wants the zero MDR system to be continued on UPI payments for merchants. According to AIMRA, digital payments should not become an additional financial burden for retail traders. The organization has made it clear that its protest is not against the system of UPI or Digital India.
What message did mobile retailers give to the government?
Tarvinder Singh said that if we want Digital India then UPI should remain at zero MDR. This is not a protest against UPI or Digital India. Our concern is about the additional financial burden on merchants who accept digital payments. If Digital India is to move forward then digital payments should remain affordable for the entire retail system. Our clear demand is that UPI merchant payments should continue under the zero MDR regime.