New Delhi: After meeting Finance Minister Nirmala Sitharaman, two prominent traders' associations have called off their planned 'No UPI Day' protest. The associations had sought changes to the proposed UPI Merchant Discount Rate (MDR) over concerns about its impact on merchants.
The All India Consumer Products Distributors Federation (AICPDF) and the All India Mobile Retailers Association (AIMRA) had announced the October 2 protest to oppose the proposed MDR and highlight concerns over its possible impact on merchants.
Traders Seek Higher MDR Threshold
A delegation led by BJP MP Praveen Khandelwal met Sitharaman and presented concerns and suggestions from the trading and retail community regarding the proposed changes.
The associations urged the government to defer implementation of the proposed MDR, particularly in view of the upcoming festive season, when business activity and digital transactions are expected to increase.
The trader bodies also called for a review of the proposed Rs 1 lakh threshold and asked the government to consider raising it to Rs 5 lakh, citing the operational realities faced by merchants.
They further sought the exclusion of Merchant-to-Merchant (M2M) transactions from the MDR framework and called for a special committee to examine their concerns and suggest a way forward.
'No UPI Day' Protest Withdrawn
Following the meeting, the two associations said they appreciated the Finance Minister's response to their concerns and hoped the issues raised would be examined.
The associations said they were “grateful” to the Finance Minister for hearing their concerns and expressed hope that the issues raised would be considered and addressed.
“In view of the discussions held, AICPDF and AIMRA have decided to withdraw the proposed 'NO UPI DAY' scheduled for 2nd October,” the associations said in a joint statement.
The decision means traders associated with the two organizations will not proceed with the planned one-day suspension of UPI payments on October 2.
Why Traders Had Planned 'No UPI Day'
The proposed protest was announced in response to the government's plan to introduce a UPI MDR, with traders expressing concern that transaction-related charges could increase the financial burden on merchants and businesses.
Under the planned protest, participating traders were expected to stop accepting UPI payments for a day as a way of drawing attention to their concerns over the proposed MDR framework.
The associations had sought a review of the proposed mechanism, particularly the threshold for its application and the treatment of Merchant-to-Merchant transactions.
The withdrawal of the protest follows the meeting with Sitharaman, with the trader bodies now seeking consideration of their demands, including a higher threshold and a review of the proposed MDR implementation.