no-upi-day-indore-traders-protest-proposed-mdr-charges

Traders in Indore observed a symbolic ‘No UPI Day’ on Wednesday to oppose the proposed 0.4 per cent Merchant Discount Rate (MDR) on UPI transactions exceeding Rs 2,000. Several shopkeepers displayed protest stickers outside their establishments and conducted cash-only transactions during the day.

 

The traders argued that the proposed charge would eventually raise prices for consumers and add to inflation. They urged the government to reconsider the proposal, warning that its implementation could push them back towards cash payments.

 

Akshay Jain, president of the Indore Retail Garment Association and joint secretary of the Ahilya Chamber of Commerce and Industry, said around 125 trader organisations had backed the protest.

 

Jain said the symbolic campaign was intended to highlight the concerns of the trading community and draw the government’s attention to the possible effect of the proposed surcharge. He maintained that any additional cost imposed on merchants would ultimately be passed on to customers through higher prices.

 

“A merchant does not create money. A merchant sells goods, and any increase in the cost of goods will ultimately be passed on to the customer,” Jain said.

He said traders had embraced digital payments after 2016 in support of the government’s drive towards a digital economy. According to Jain, nearly 85 per cent of their business had shifted to digital payments over the past 10 years.

 

Jain said the trading community had supported the development of the digital payment system and appealed to the government not to disrupt it. He added that traders would continue accepting the payment method until October 15, but could return to cash transactions afterwards if the proposed MDR came into force.

 

Hemant Doshi, who runs a ready-made garment store in Indore, said traders were opposing the proposed charge on UPI payments above Rs 2,000 because customers would bear its eventual impact.

 

Doshi said merchants could not absorb the cost themselves and would have to recover it by increasing the prices of goods. As part of Wednesday’s protest, traders accepted no UPI payments, he said.

 

He added that if the MDR was not withdrawn, traders would accept payments above Rs 2,000 only in cash, while UPI payments would continue to be accepted for amounts below Rs 2,000.