More than 1,000 trade associations across Gujarat are observing a symbolic ‘No UPI Day’ on October 2, asking customers to pay by cash or card in protest against a new National Payments Corporation of India (NPCI) rule that introduces a 0.4% merchant discount rate (MDR) on UPI transactions above Rs 2,000.
The one-day action spans sectors including grocery and FMCG, electronics, hardware, readymade garments, electrical goods and auto parts. Trader bodies have asked participating outlets to cover UPI QR codes, soundboxes and payment prompts with black cloth to signal that UPI payments will not be accepted during the protest.
Jayendra Tanna, president of the Gujarat Traders’ Federation, said around 1,000 trade associations, including organisations at town and village level, would participate. He said the action would extend across sectors and geographies rather than being limited to major cities.
The trader groups say the proposed MDR will place additional pressure on small and mid-sized businesses operating on narrow margins. They have also warned that the cost could eventually be passed on to consumers, although the protest organisers’ immediate demand is directed at the payment-cost policy.
Mobile and electronics retailers are among the participants preparing to suspend UPI acceptance. Nikunj Patel, president of the Gujarat chapter of the All-India Mobile Retailers Association, said the impact would be particularly significant for retailers handling bills above Rs 2,000, where UPI is frequently used.
“More than 10,000 retailers in Gujarat and around 1.5 lakh dealers nationwide are set to participate,” Patel said. He added that retailers with net margins of 0.75% to 1.5% would not be able to absorb an additional MDR. The figures were provided by the retailers’ association.
Patel said participating stores would cover UPI soundboxes, QR posters and other visible digital payment cues. Customers would instead be asked to use cash or cards for purchases at the participating outlets.
The planned protest highlights the dependence of Gujarat’s retail network on digital payment infrastructure, from established urban markets to smaller towns and villages. It also places the cost of digital transactions at the centre of a dispute between merchant groups and the payment system’s policy framework.
Meghraj Dodwani, president of the Shree Ahmedabad Vepari Mahasangathan, said the provision would add a direct burden on traders. “‘No UPI Day’ is meant to bring the issue to the govt’s attention,” he said.
The protest is scheduled for October 2, which is Gandhi Jayanti. The trader organisations’ next stated step is to suspend UPI acceptance for the day and use the action to press the government to address their concerns over the proposed MDR.
