Traders Withdraw 'No UPI Day' Call After Meeting With FM Sitharaman

Two trader bodies have called off their planned "No UPI Day" on October 2 after a delegation met Finance Minister Nirmala Sitharaman in New Delhi on Wednesday. The protest was meant to oppose the proposed UPI Merchant Discount Rate. The All India Mobile Retailers Association and the All India Consumer Products Distributors Federation announced the withdrawal.

The delegation was led by Praveen Khandelwal, Member of Parliament from Chandni Chowk and secretary general of the Confederation of All India Traders. Around 20 senior trade leaders from different states were part of the meeting.

What The Traders Sought

The associations asked the government to postpone the MDR rollout because the festive season is approaching and business activity is rising. They also suggested a gradual start. In their view, the charge could begin at 0.20% in FY 2026-27 and then rise by 0.05% each year until it reaches 0.40%. This, they said, would give merchants time to adjust.

The trade bodies also wanted the proposed ₹1 lakh threshold to be reviewed. They urged the government to raise it to ₹5 lakh, citing the way merchants actually operate. They further asked that merchant-to-merchant transfers be kept outside the MDR system. A special committee should study the issues and suggest a balanced path, they said.

Moneycontrol reported that the proposed 0.4% fee on merchant payments above ₹2,000 is still scheduled to take effect from October 15.

According to a joint statement from AIMRA and AICPDF, Sitharaman heard the delegation's concerns patiently. She assured them that the issues would be considered and addressed. CAIT said in a statement that the Finance Minister reiterated the government's commitment to promoting digital transactions while protecting the interests of all stakeholders.

Khandelwal later told reporters that the discussions were constructive and that the trading community had been assured its concerns would get due consideration. Following this, both organisations decided to withdraw the symbolic protest. Their joint statement said, "In view of the discussions held, AICPDF and AIMRA have decided to withdraw the proposed 'NO UPI DAY' scheduled for 2nd October."

The trade leaders said they support the Digital India mission and described UPI's growth as a global example. They clarified that their aim was not to oppose digital payments. Instead, they wanted policies that are balanced, inclusive and helpful for both consumers and businesses. They expressed confidence that continued talks with the government would lead to a practical and sustainable framework. Such a framework, they said, should strengthen India's digital economy while protecting millions of traders and MSMEs.