If you also make payments through your smartphone instead of carrying cash and use UPI (Google Pay, PhonePe and Paytm) everywhere from tea shops to shopping malls, then you may face some problems on October 2.
Business News: If you depend on UPI instead of carrying cash for everyday purchases, you may face problems at some shops on October 2. In fact, some mobile retailers in the country have announced to celebrate ‘No UPI Day’ on October 2. Under this, shopkeepers involved in the protest can cover their UPI QR codes and will not accept digital payments from customers.
After this news came out, the question started arising among the people that whether the UPI service will be stopped in the entire country on October 2 and it will not be possible to make payment through apps like Google Pay, PhonePe or Paytm? It’s not like that. This is not a national level UPI service shutdown, but a protest by some merchants against the proposed MDR.
Why is No UPI Day being celebrated?
Some retailers selling mobile phones, accessories and electronic goods are opposing the proposed 0.4 percent Merchant Discount Rate or MDR. This fee is proposed to be implemented on certain merchant UPI transactions. Mobile retailers say that there has been a zero-MDR system on UPI merchant payments for a long time. In such a situation, the cost of business may increase due to the new fees. Retailers are preparing to hold a symbolic protest on this issue on October 2, i.e. Gandhi Jayanti.
What is going to change from October 15?
Under the proposed new rules, MDR up to 0.4 percent is to be imposed on certain Person-to-Merchant i.e. P2M UPI payments of more than Rs 2,000 from October 15, 2026. However, this rule will not apply to all types of UPI transactions. Person to person i.e. P2P transfers will continue under a different arrangement as before.
Small merchant payments have also been kept out of the scope of the proposed fee. Apart from this, a separate MDR system is proposed for some important areas. This means that the fee arrangement may be different between sending money to a friend or family member through UPI and buying goods at a shop.
Why are mobile retailers protesting?
According to reports, the protest is being led by the All India Mobile Retailers Association (AIMRA). The association says that many times digital payments of huge amounts take place in the mobile business. The implementation of MDR on such transactions may increase the costs for shopkeepers. According to officials associated with AIMRA, some mobile shopkeepers will cover their UPI QR codes with black cloth during the protest.
Their purpose is to let customers know that they do not agree with the proposed MDR arrangement. Retailers want the zero-MDR model to continue for UPI merchant payments.
Will UPI be closed across the country on October 2?
No. UPI network or its servers will not be shut down across the country on October 2. Google Pay, PhonePe, Paytm and other UPI apps will continue to work normally. The problem may arise only at those shops where traders will join this protest. If a shop’s QR code has been removed or the shop does not accept UPI payments, the customer may have to use cash or any other payment option available. At the same time, UPI payments can continue normally in big showrooms, online platforms and those merchants who are not involved in ‘No UPI Day’.