Indore traders have decided to observe September 23 as a “No UPI Day”, with more than 125 trade associations planning to stop accepting UPI payments in protest against the proposed merchant discount rate on higher-value transactions.
The protest is expected to involve around two lakh traders in the city. Participating businesses plan to cover UPI scanners and other payment devices with black cloth as a symbolic protest against the new charges. The Ahilya Chamber of Commerce and Industry announced the action after a meeting of trade associations on Friday.
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The move has also prompted the Bhopal Chamber of Commerce and Industries to plan a meeting and submit representations to the state and central governments seeking withdrawal of the proposed UPI charges.
Traders Oppose MDR on Payments Above ₹2,000
Under the new framework, scheduled to take effect from October 15, most eligible person-to-merchant UPI transactions above ₹2,000 will attract a merchant discount rate of 0.4%. Payments of up to ₹2,000 will remain free.
Fuel transactions above ₹2,000 will be treated differently and will attract a flat MDR of ₹5 per transaction. The charge is to be borne by merchants and is not to be passed on to customers as a separate UPI fee.
Ahilya Chamber president Ramesh Khandelwal said traders had unanimously decided to oppose the MDR and warned that the move could create difficulties for the Digital India push. The chamber plans to raise the issue with the Union finance ministry through the National Trade Welfare Board.
The Indore Retail Garments Association, which represents around 2,000 traders, has also launched a poster and social media campaign against the proposed charges. Its president, Akshay Jain, said the protest could affect transactions involving around 10 lakh consumers.
Trade bodies from cloth markets, Sarafa, Siyaganj grocery market, Marothia, rice and pulses markets, plywood businesses and petrol pumps have joined the protest.
Petrol Dealers Also Plan to Restrict UPI Payments
Opposition to the new framework has also come from petrol dealers in Madhya Pradesh. Dealers have separately announced that they would stop accepting UPI payments for fuel bills above ₹2,000 from October 15.
Narendra Bafna said the additional cost could discourage merchants from accepting digital payments, particularly for higher-value purchases.
The Centre has said that around 96% of merchant UPI transactions will remain unaffected by the new framework, while person-to-person UPI payments will continue to remain free.
Trade associations in Indore are planning further representations and protests after September 23 if their concerns are not addressed.
Bhopal Traders Prepare Separate Representation
The opposition is also spreading to Bhopal, where the Chamber of Commerce and Industries plans to convene a meeting and submit memorandums to the state and central governments.
Chamber president Govind Goyal said traders had initially been encouraged to adopt digital payments and were now being asked to bear an additional charge. He said many traders operate on thin margins and claimed that nearly 90% of traders could come under the ambit of the new charges.
Bhopal-based trader and chamber member Ajay Devnani also called for trader representation in the GST Council so that business concerns could be heard when such decisions are taken.
With Indore traders preparing for a citywide “No UPI Day” and petrol dealers threatening to restrict UPI payments above ₹2,000, opposition to the proposed MDR framework is now gathering support from multiple trade groups across Madhya Pradesh.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
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