Mobile phone retailers across India are planning to observe October 2 as ‘No UPI Day’ to protest the proposed Merchant Discount Rate (MDR) on certain UPI merchant payments. The campaign, called by the All India Mobile Retailers Association (AIMRA), will involve participating retailers temporarily stopping accepting UPI payments and potentially covering their QR codes with black cloth.
The protest is scheduled for Gandhi Jayanti and comes ahead of a new 0.4% MDR on eligible person-to-merchant UPI transactions above Rs. 2,000, starting October 15, 2026. The proposed charge is a merchant-side cost and will not be directly charged to consumers.
AIMRA said the proposed MDR could increase the financial burden on mobile retailers, particularly businesses operating with thin margins. The association is seeking continuation of a zero-MDR structure for merchant UPI payments.
According to AIMRA, a small retailer processing between Rs. 5 lakh and Rs. 30 lakh in UPI payments each month could face an additional monthly cost of around Rs. 2,000 to Rs. 12,000 under the 0.4% MDR.
The association also estimates that the proposed charge could create a financial burden of around Rs. 40 crore per month, or nearly Rs. 500 crore annually, for small mobile retailers across India. These figures are estimates provided by the retailers’ body.
AIMRA Vice President and Delhi NCR President Tarvinder Singh said the protest is not against UPI or digital payments but against the additional financial burden on merchants.
Retailers participating in the protest are expected to refrain from accepting UPI payments for the day. They may also symbolically cover their UPI QR codes with black cloth.
However, the protest does not mean UPI services will stop across India. Participation will depend on individual mobile retailers, while UPI payments at other businesses will continue.
Customers planning to purchase smartphones, accessories or other products from physical mobile stores on October 2 may therefore need to keep cash or card payments available as alternatives.
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The October 2 protest precedes the separate implementation of the new MDR framework from October 15. Under the framework, eligible person-to-merchant UPI transactions above Rs. 2,000 will attract a 0.4% MDR.
Transactions up to Rs. 2,000, as well as person-to-person UPI transfers, will remain exempt. Small merchants receiving up to Rs. 1 lakh per month through UPI QR payments will also remain eligible for mandatory zero MDR.
For customers, the proposed MDR remains a merchant-side charge. The October 2 protest therefore focuses on retailers’ concerns about the cost of accepting eligible UPI payments rather than calling for a nationwide suspension of UPI.