Traders Suspend UPI Payments Across India to Protest MDR Charges

Traders and retailers across India observed 'No UPI Day' on Friday, October 2, suspending digital payments to protest proposed Merchant Discount Rate (MDR) charges on UPI transactions. The Federation of Retail Traders Welfare Association (FRTWA) reported that around 250 trade associations from Gujarat, Maharashtra and the Mumbai Metropolitan Region participated, with associations from other parts of the country also joining the nationwide demonstration.

Retailers faced operational challenges as customers arrived unprepared for the digital payment suspension. Some shopkeepers sought workarounds by requesting customers to transfer payments directly to personal accounts to avoid MDR applicability. However, petrol dealers did not completely halt UPI services, awaiting government clarity expected by October 15.

FRTWA warned of 'Black Diwali' if the MDR issue remains unresolved. Many citizens remained unaware of the protest, continuing with alternative payment modes like cash and cards.