Traders in Indore marked a protest on September 23, 2026, by observing a ‘No UPI Day’ to highlight their discontent with a proposed Merchant Discount Rate (MDR) of 0.4 per cent on UPI transactions exceeding Rs 2,000. This symbolic action involved shopkeepers placing stickers on their storefronts, signalling their support for the cause.

The protesting traders expressed their concerns that the new charges would escalate costs for consumers and contribute to overall inflation. They are urging the government to reconsider its stance, with various merchants indicating that a reversion to cash transactions may be inevitable if these charges come into effect.

Akshay Jain, the president of the Indore Retail Garment Association and joint secretary of the Ahilya Chamber of Commerce and Industry, stated that around 125 trader organisations backed this protest. He emphasised that it aims to attract governmental attention to the issues faced by traders, especially the adverse effects of increased costs on consumer prices.

Concerns Over Increased Costs and Inflation

Jain articulated that despite government claims that the fee would target merchants rather than consumers, the ultimate burden would still fall on the latter. He warned that any surcharge imposed would lead to inflated consumer prices, undermining the strides made toward stabilising costs.

He highlighted that the digital payment landscape has changed significantly since 2016, with traders embracing this shift as part of the government’s push for a cashless economy. Jain remarked that since they had cooperated with the government’s initiatives, it would be unjust to implement a measure that disrupts their operations. He urged authorities to reconsider their decision, stressing that it would heighten inflation if enacted.

Furthermore, Jain disclosed that while traders would continue to accept payments until October 15, they anticipated reverting to cash transactions should the government not withdraw the proposed charges.

Traders’ Actions and Their Implications

Hemant Doshi, a trader operating a ready-made garment store, expressed similar sentiments about the impact of the proposed charges on consumers. He stated that conducting ‘No UPI Day’ was essential to demonstrate their opposition to the fee on UPI transactions exceeding Rs 2,000.

Doshi remarked that the traders were enforcing a cash-only policy for the day, pledging to accept UPI payments only for amounts below Rs 2,000. He reiterated that any increases in costs would ultimately force them to pass those expenses on to their customers, significantly affecting pricing strategies.

The situation reflects a broader concern among local merchants, as many have begun to question the sustainability of digital payments should additional fees be introduced. They fear that a lack of consumer support in the face of increased prices may damage their businesses in the long term.

As discussions continue surrounding this issue, the traders remain steadfast in advocating for their rights, urging the government to consider the potential repercussions on both their businesses and consumers alike.

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