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Ahmedabad/Vadodara: More than 600 trade associations across Gujarat will observe a symbolic statewide ‘No UPI Day’ on Oct 2, urging customers to pay by cash or card instead of UPI. The one-day protest, planned on Gandhi Jayanti , is being organised by trader bodies opposing 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. “Around 600 trade associations will participate. Nikunj Patel, president of AIMRA’s Gujarat chapter, said the impact would be significant in high-value categories where UPI is frequently used for purchases above Rs 2,000. “We operate on thin net margins of 0.75% to 1.5% and cannot absorb additional payment costs. AIMRA estimates the additional MDR burden could translate into losses of about Rs 40 crore a month, or nearly Rs 500 crore annually, and alleges uneven treatment compared to sectors where charges are capped or nil. We will also join the protest on Oct 2,” he said, adding that the charges could revive cash-led transactions and create friction for businesses during the festive season.
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Trader groups said the proposed MDR would squeeze already tight margins for small- and mid-sized businesses and eventually push costs onto consumers. Jayendra Tanna, president of Gujarat Traders’ Federation (GTF), said the protest would cut across sectors and geographies. “Traders from grocery, electronics, hardware, readymade garments, electricals, auto parts and FMCG will participate and will not accept UPI on Oct 2,” Tanna said. All-India Mobile Retailers Association (AIMRA) said mobile and electronics outlets would also take part, citing retailers’ limited ability to absorb any incremental payment costs. “More than 10,000 retailers in Gujarat and around 1.5 lakh dealers nationwide are set to participate in the UPI MDR protest,” Patel said. Transactions will be processed only via cash or credit cards,” he said.
Participating shops have been asked to cover UPI QR codes and UPI soundboxes with black cloth to signal that UPI payments will not be accepted on the day. Associations from towns and villages will also join the process. Patel added that traders would suspend visible digital acceptance cues for the day. “Stores will cover UPI soundboxes, POS machines and QR code posters with black cloth, and will not accept UPI payments. Download the TOI App.
Paresh Parikh, president of Vadodara Vepari Vikas Mandal and a leader of the Confederation of All-India Traders, said local units would coordinate next steps.“Our members will meet on Saturday evening to chalk out the further course of action.