Summary of this article
Trade bodies called off the planned No UPI Day protest.
Leaders met Finance Minister Nirmala Sitharaman to discuss proposed MDR.
They suggested lower rates, higher thresholds, and phased implementation.
The All India Mobile Retailers Association (AIMRA) and the All India Consumer Products Distributors Federation (AICPDF) have withdrawn their proposed ‘No UPI Day’ protest scheduled for October 2, 2026 after a delegation met Union Minister of Finance Nirmala Sitharaman over concerns regarding the proposed Unified Payments Interface (UPI) Merchant Discount Rate (MDR).
The protest was planned against the proposed 0.40 per cent MDR on specified UPI merchant transactions above Rs 2,000, which is scheduled to take effect from October 15, 2026.
AIMRA Withdraws ‘No UPI Day’ Protest
In a post on X (formerly Twitter), AIMRA said its delegation met Sitharaman in New Delhi to discuss the concerns of mobile retailers regarding UPI MDR. AIMRA said the she heard their representations and assured the association of positive consideration.
Following the meeting, the association announced that it was recalling the nationwide ‘No UPI Day’ protest planned for October 2, 2026. AIMRA had earlier said the proposed MDR could put additional pressure on the margins of small retailers.
CAIT Delegation Meets Sitharaman
In a separate post on X, the Confederation of All India Traders (CAIT) said a delegation of around 20 senior business leaders from different states met Sitharaman to discuss concerns and suggestions regarding the proposed UPI MDR. The delegation was led by CAIT national general secretary and Chandni Chowk MP Praveen Khandelwal, and included representatives from CAIT, AICPDF, AIMRA and other business organisations.
According to a PTI report, the delegation sought deferment of the proposed MDR, a phased implementation, and changes to the threshold for its applicability. The trade bodies proposed starting the MDR at 0.20 per cent in 2026-27 and increasing it by 0.05 percentage points annually until it reaches 0.40 per cent.
They also sought an increase in the proposed Rs 1 lakh threshold for MDR applicability to Rs 5 lakh, exemption of merchant-to-merchant (M2M) transactions from MDR and an expert committee to examine the concerns of the retail and distribution sector. CAIT said Sitharaman heard the delegation’s points, following which AIMRA and AICPDF decided to withdraw the proposed protest.
