Mobile phone retailers across India are planning a one-day protest against the proposed Merchant Discount Rate (MDR) on certain UPI transactions. The All India Mobile Retailers Association (AIMRA) has called October 2, 2026, “No UPI Day,” with retailers planning to stop accepting UPI payments for the day.
The protest is aimed at raising concerns over the proposed 0.4% MDR on eligible person-to-merchant (P2M) UPI transactions above ₹2,000, which is scheduled to take effect from October 15.
QR Codes to Be Covered With Black Cloth
According to AIMRA Vice President Tarvinder Singh, participating mobile retailers will symbolically cover their UPI QR codes and sound boxes with black cloth on Gandhi Jayanti.
Retailers say the protest is not against UPI itself but against the additional cost they expect from the new MDR structure. AIMRA has called for merchant UPI payments to continue under a zero-MDR system.
Why Are Mobile Retailers Concerned?
AIMRA has told the Finance Ministry that the proposed MDR could affect retailers operating on already-tight margins.
The association estimates that a small retailer processing between ₹5 lakh and ₹30 lakh in monthly UPI payments could face an additional cost of around ₹2,000 to ₹12,000 per month under the 0.4% rate. AIMRA has estimated the overall impact on small mobile retailers at around ₹40 crore per month.
Will UPI Stop Working for Everyone on October 2?
No. The proposed “No UPI Day” is an industry protest by participating mobile retailers, not a nationwide shutdown of UPI.
Other merchants may continue accepting UPI payments as usual. The proposed MDR also does not mean consumers will generally be charged an additional fee for making eligible payments; the charge is structured as a merchant-side fee. Person-to-person UPI transactions and transactions outside the specified merchant categories remain outside the proposed charge.
The October 2 protest will therefore be a temporary action by participating mobile retailers, while the wider MDR framework is scheduled for implementation from October 15.
