<i>Retail and distribution bodies say the new MDR on high-value UPI transactions could add thousands of crores to their costs. What exactly is changing, and why are traders protesting?</i>
If you walk into a mobile phone store on October 2 and find its UPI QR code covered with a black cloth, it is not a technical glitch, but because some retailers plan to switch off UPI for a day to protest against a proposed charge on some merchant transactions.
Several traders associations across the country have called for a one-day ‘No UPI Day’ to oppose a Merchant Discount Rate (MDR) on certain UPI payments above Rs 2000. The protest is not a suspension of UPI by the payment network. Whether a shop refuses UPI that day will depend on whether its owner or local trade association takes part.