Section Of Gujarat Traders Observe 'No UPI Day' To Protest Against MDR On Transactions

A section of traders in Gujarat observed 'No UPI Day' on Friday to oppose the proposed 0.4 per cent Merchant Discount Rate (MDR) on transactions above Rs 2,000, saying it would put additional burden on small retailers.

Traders supporting the stir covered their QR code machines, sound boxes and payment scanners with black cloth and displayed 'Sorry, no UPI today' posters at their shops.

Jeyendra Tanna, president of Gujarat Trader's Federation, which has more than 800 member associations, said the response to the protest was mixed across the state, though several clusters responded positively.

The effort to draw the government's attention to the issue was a success, he claimed.

"The response was positive in certain clusters such as Bazaar areas where association shops are located. In other areas, it was not as successful. We halted the use of UPI to draw the government's attention to the issue. Across Gujarat, 800 associations participated, and a significant number of members responded," Tanna said.

A Rajkot based trader said the MDR decision would not work for industry or the public as it will drive up inflation and cause a market slowdown.

"Fifty percent of our payments come via UPI. We urge the government to either discontinue UPI or withdraw these charges," the trader said.

Nikunj Patel, president of the Gujarat-chapter of All India Mobile Retailer's Association, said his association went with the decision taken at the central level to withdraw the protest call.

"Mobile traders did not participate in the protest. Union Finance Minister Nirmala Sitharaman has assured us that our demands will be addressed through dialogue. That is why we did not observe a shutdown," he claimed.

The government has clarified that customers will not be charged any additional amount due to the changes to the UPI (Unified Payments Interface) system, which remained completely fee-free for nearly six years.

"Customers will not have to pay any fee for making such payments through UPI," the Finance Ministry had said in a statement earlier.