Madhya Pradesh merchants and retailers observe ‘No UPI Day’ and seek refund of MDR charges
Merchants cover QR code scanners with black cloth to protest the introduction of merchant discount rate (MDR) in UPI transactions as merchants observe NO UPI Day on September 23, 2026 in Bhopal. Photo credit: ANI
Several traders and merchants in cities across Madhya Pradesh on Wednesday (September 23, 2026) protested against the Merchant Discount Rate (MDR) charges on UPI transactions by observing ‘UPI day’ and covering QR codes at their outlets.
In cities like Bhopal and Indore, QR code stickers and payment confirmation sound boxes covered in black cloth were seen in several shops, with traders demanding cash from customers. Demonstrations were also witnessed at various places where merchants demanded the move to be revoked while threatening a complete boycott of digital payments.
On September 15, the National Payments Corporation of India (NPCI) introduced a charge of 0.4% on merchant-to-merchant (P2M) UPI payments above ₹2,000. The new rates, which will come into effect from 15 October 2026, will apply to merchants who will need to pay their banks and payment processors. Personal transactions and payments to small sellers were exempted from the new rates.
The protests in Madhya Pradesh have been called by the Ahilya Chamber of Commerce and Industry and are being attended by various business entities in cities like Indore, Bhopal, Gwalior and Jabalpur.
At a demonstration in Indore, shopkeepers raised slogans like “Aaj ka vyapaar, nakad vyapaar (Today’s shop, cash shop)” and said they were turning away customers who make digital payment.
Posters reading ‘No UPI Day’ were also put up outside shops in busy markets across the cities. The posters also stated that traders are already paying taxes like GST and Income Tax. A few eyeglass merchants were also seen in Indore with “No UPI, Cash Only” stickers.
Merchants argued that the additional fees would affect their business costs and that they would have to charge extra money from customers.
Akshay Jain, president of Indore’s Retail Garment Association and joint secretary of the Ahilya Chamber of Commerce and Industry, said at least 125 trade bodies across the state participated in Wednesday’s (September 23) symbolic protest.
“The purpose of the protest was to bring to the attention of the government the concerns of traders and try to understand our request. If you impose any kind of surcharge, the cost will increase and when the cost increases, inflation will increase. We are for ensuring that inflation does not increase,” he told ANI.
“We supported the government and adopted digital payments in 2016. In 10 years, we converted 85% of our business to digital payments. After we switched to digital payments, the government should not break the system that was created with our support. We urge the government to reconsider its decision. Actions must be taken to prevent this price increase,” he said, adding that if the decision is not fully reversed after October5, it will not be possible return cash5.
Abhishek Jain, president of Bhopal’s Chowk Bazar Vyapaari Sangh, said the move would cause inflation in the country to rise.
“The government is levying a levy of 0.4% + GST on us. This is increasing inflation. Entrepreneurs are already facing the heat of inflation in most sectors. The government should think about it,” he said.
Published – 24 Sep 2026 04:20 IST