Madhya Pradesh traders, retailers observe ‘No UPI Day’, seek rollback of MDR charges

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Shopkeepers cover QR code scanners with black cloth to protest against the implementation of Merchant Discount Rate (MDR) in UPI transactions, as traders observe NO UPI Day in Bhopal on September 23, 2026. | Photo Credit: ANI

Several traders and shopkeepers in cities across Madhya Pradesh on Wednesday (September 23, 2026) protested against the Merchant Discount Rate (MDR) charges on UPI transactions by observing ‘No UPI Day’ and covering the QR codes on their outlets.

In cities like Bhopal and Indore, QR code stickers and payment confirmation soundboxes on several shops were seen covered with a black cloth, with the traders requesting customers to pay in cash. Demonstrations were also witnessed at various places, with traders demanding a rollback of the move while threatening a complete boycott on digital payments. 

On September 15, the National Payments Corporation of India (NPCI) introduced a charge of 0.4% on person-to-merchant (P2M) UPI payments above ₹2,000. The new rates, which will come into effect from October 15, 2026, will be applicable to merchants, who will have to pay their banks and payment processors. Person-to-person transactions and payments to small vendors have been exempted from the new rates. 

The protests in Madhya Pradesh have been called by the Ahilya Chamber of Commerce and Industry, with various trader bodies in cities like Indore, Bhopal, Gwalior and Jabalpur taking part in it. 

At a demonstration in Indore, traders raised slogans like ‘Aaj ka vyapaar, nakad vyapaar [today’s business, a cash business]’ and claimed that they refused customers who were making a digital payment. 

Posters reading ‘No UPI Day’ were also pasted outside shops in busy markets across cities. The posters also read that the traders were already paying taxes like GST and income tax. In Indore, several traders were also seen wearing eyeglasses with ‘No UPI, cash only’ stickers on them.  

The traders claimed that the additional charges will impact their business costs and that they will have to take extra money from the customers. 

Akshay Jain, president of Indore’s Retail Garment Association and joint secretary of Ahilya Chamber of Commerce and Industry, said that at least 125 trade bodies across the State were taking part in Wednesday’s (September 23) symbolic protest. 

“The purpose of the protest was to draw the government’s attention to the concerns of traders and try to understand our request. If you impose any kind of surcharge, it will add to the cost, and when the cost increases, inflation will rise. We are in favour of ensuring that inflation does not increase,” he told news agency ANI. 

“We supported the government and adopted digital payments in 2016. In 10 years, we have brought 85% of our business onto digital payments. After we have shifted to digital payments, the government should not break the system that was created with our support. We urge the government to reconsider its decision. Steps must be taken to prevent this rise in prices,” he said, adding that if the decision is not taken back, the traders may be forced to shift to cash payments completely after October 15.

Abhishek Jain, president of Bhopal’s Chowk Bazar Vyapaari Sangh, said that the move will cause an increase in the inflation in the country. 

“The government is applying a 0.4% + GST charge on us. This is increasing inflation. Businesspeople are already facing the heat of inflation at the moment in most sectors. The government should think about this,” he said. 

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