UPI Scanners to Be Shut That Day… Here’s Why?

Business associations across India have announced plans to observe October 2 as “No UPI Day” in protest against the new Merchant Discount Rate (MDR) on certain UPI merchant payments. The Maharashtra Chamber of Commerce, Industry & Agriculture has called for the protest, with participating traders planning to cover UPI QR scanners, payment sound boxes and other devices with black cloth. The protest comes ahead of the new MDR framework coming into effect on October 15.

Under the new framework, merchants will pay an MDR of 0.4% on eligible person-to-merchant UPI transactions above ₹2,000, capped at ₹300 per transaction. Person-to-person payments and merchant transactions up to ₹2,000 will remain free, while eligible small merchants receiving up to ₹1 lakh a month through UPI will also be exempt. Traders argue that the new charges could increase the financial burden on businesses operating on low margins. Petroleum dealers and stock brokers have also sought exemptions or relief from the proposed charges.