The Chamber of Trade and Industry (CTI) has called on traders across India to observe a “No UPI Day” on October 2, opposing the reported introduction of Merchant Discount Rate (MDR) charges on UPI payments above ₹2,000 from October 15.
The Delhi-based trade organisation has urged shopkeepers and traders, including those in the national capital, to cover their UPI machines with black cloth and accept only cash on Gandhi Jayanti. CTI office-bearers have also asked Union Finance Minister Nirmala Sitharaman to withdraw the proposed charges and keep UPI transactions fully free.
According to the report, CTI president Brijesh Goyal and other office-bearers said the move could impose an additional cost on nearly six crore traders. The organisation claimed that UPI transactions could decline by as much as 50% if the charges are introduced, potentially increasing the use of cash in retail markets.
The reported charge would apply to payments above ₹2,000. CTI said a ₹3,000 payment could attract an MDR of ₹12, while a ₹50,000 transaction could incur a charge of up to ₹200. The maximum charge has reportedly been capped at ₹300. The report does not provide details of an official government notification or the proposed mechanism for collecting the charge.
CTI general secretary Gurmeet Arora and office-bearer Ramesh Ahuja said the organisation was not opposed to Digital India, but argued that the additional cost would affect retailers and distributors operating on narrow margins. Vice-president Rahul Adlakha and secretary Kunj Nakra said traders across the country were opposed to the reported change.
The organisation cited figures for financial year 2025-26 to explain its opposition. It said UPI transactions during the year totalled ₹314 lakh crore, while transactions above ₹2,000 accounted for about 4% of the transaction count but 66% of the total value, or ₹131 lakh crore. These figures were presented by CTI as evidence that higher-value digital payments would be particularly exposed to the proposed charge.
For urban businesses, the dispute centres on who would bear the cost of digital payments at the point of sale. Small retailers, distributors and service providers increasingly use UPI for customer transactions, but CTI’s position is that even a percentage-based charge could affect businesses with limited margins. The proposed protest would shift selected retail transactions back to cash for one day if traders follow the appeal.
CTI has asked the finance minister to reverse the reported decision, citing the interests of digital payments and a transparent economy. The organisation’s proposed “No UPI Day” is scheduled for October 2, while the reported MDR change is expected to take effect from October 15.
