New Delhi – A fresh standoff over digital payments is taking shape in the capital as several trader associations have announced a “No UPI Day” slated for October 2. The boycott is aimed at the government’s draft Merchant Discount Rate (MDR) that would levy a 0.4 % charge on selected UPI transactions.

Why merchants are rallying

Groups such as the Delhi Vyapar Mahasangh and the Federation of Delhi Trade Associations have called on shopkeepers to block UPI payments for one day, urging customers to pay with cash or other modes. Their objective is to highlight the extra cost burden that the proposed MDR could impose on small‑ and medium‑sized enterprises that depend heavily on UPI.

The draft MDR structure

According to the proposed rules, any UPI transaction above ₹2,000 would attract a 0.4 % MDR, slated to become effective from 15 October. While the rate appears modest, traders argue that it translates into a palpable rise in operating costs, especially for high‑volume, low‑margin businesses.

Mixed signals from the trade sector

Not every merchant federation is on board with the boycott. The Confederation of All India Traders (CAIT) has clarified that it has not issued a nationwide “No UPI Day” directive, and several Delhi‑based groups remain undecided.

Additionally, the All India Mobile Retailers Association (AIMRA) and the All India Consumer Products Distributors Federation (AICPDF) withdrew their initial backing after talks with Finance Minister Nirmala Sitharaman, adding further nuance to the debate.

What shoppers might encounter on October 2

For consumers, the experience is likely to be uneven. Some outlets may continue to accept UPI, while others will request cash, cards, or alternative digital wallets. Shoppers heading to markets should be prepared for a mix of payment options depending on each merchant’s stance.

Looking ahead

The dispute underscores how swiftly policy tweaks can ripple through India’s dynamic digital‑payment ecosystem. As the 15 October deadline draws near, both the government and trade bodies will be watching closely to see whether the protest gains momentum or fizzles out.