Jaipur traders and business organisations observed a ‘No UPI Day’ on Friday, with several markets switching to cash-only payments to protest proposed Merchant Discount Rate charges on certain digital transactions from October 15. The campaign led to sharp reductions in UPI use across parts of the city, according to the Bharatiya Udyog Vyapar Mandal (BUVM).
Business establishments displayed posters calling for cash payments, while many traders wore black bands during the protest. At Muhana Mandi, traders and businesses were seen accepting cash payments only for the day.
The campaign was launched by BUVM national president Babulal Gupta from Gandhi Vatika after he paid tributes to Mahatma Gandhi on Gandhi Jayanti. The organisation said reports from different states indicated that UPI transactions had stopped completely in some places, while certain markets recorded reductions of up to 60%.
BUVM is opposing a proposed framework under which customer-to-merchant UPI transactions above Rs 2,000 would attract an MDR of 0.4% when the trader is making more than one lakh UPI transactions a month. The organisation has also objected to proposed charges on transactions involving telecom, railways, insurance, fuel and agriculture-related goods and services.
The proposed framework includes a Rs 5 charge for transactions in those categories, according to the report. It also proposes an MDR of 0.02% on payments linked to mutual funds, securities, stockbrokers and dealers. The changes have placed payment costs at the centre of a dispute between trader organisations and the proposed digital-payment framework.
The protest reflects how a policy affecting payment intermediaries can quickly reach street-level commerce. Traders of different types and sizes participated in the campaign, with the visible shift to cash making payment terms part of the customer transaction at markets and business establishments.
BUVM said any additional costs incurred by banks and digital payment facilitator companies should be recovered from other sources instead of being passed on to UPI users. It is demanding that UPI remain a transparent, independent and cost-free payment platform without additional financial burdens on customers.
The proposed charges are scheduled to take effect from October 15, while BUVM’s demands concern both the structure of the charges and who should bear the cost of processing digital payments.
