Traders Call Off 'No UPI Day' After Meeting with Finance Minister: What’s Next?

In a significant development, major traders' organizations have rescinded their call for a 'No UPI Day' protest after a meeting with Finance Minister Nirmala Sitharaman. The discussions focused on concerns regarding a proposed 0.4% fee on UPI transactions exceeding Rs 2,000, which traders believe could adversely affect small businesses. Despite the withdrawal of the protest, the fee is still set to take effect on October 15. Traders remain hopeful that their concerns will be addressed before implementation. The National Payments Corporation of India has clarified that the fee applies only to transactions above Rs 2,000, with the majority of UPI transactions remaining unaffected.

By Narendra Chaudhary Sep 30, 2026, 18:07 IST

Traders Withdraw Protest Against UPI Charges

New Delhi: Major trade organizations have decided to cancel their planned observance of October 2 as 'No UPI Day' after a productive meeting with Finance Minister Nirmala Sitharaman in the capital on Wednesday.

A group of approximately 20 trade representatives from various regions convened with the finance minister to voice their concerns regarding the proposed 0.4% fee on merchant UPI transactions exceeding Rs 2,000.

The traders expressed that this fee could impose additional financial strain on small and medium enterprises, potentially hindering the adoption of digital payments among merchants.

The delegation was headed by Praveen Khandelwal, a Member of Parliament from Chandni Chowk and the Secretary General of the Confederation of All India Traders (CAIT).

During the meeting, representatives sought clarification on the proposed fee and urged the government to consider the trading community's concerns.

Previously, the All India Consumer Products Federation and the All India Mobile Retailers Association had announced their intention to observe October 2 as 'No UPI Day' in protest against the fee.

However, following discussions with the finance minister, these organizations opted to retract their protest.

Khandelwal stated to reporters that the decision to withdraw was made after constructive discussions and assurances that the traders' concerns would be taken seriously.

He noted that the trading community felt encouraged by the dialogue and intends to maintain communication with the government regarding this issue.

Despite the cancellation of the protest, the 0.4% fee on eligible merchant UPI transactions above Rs 2,000 is still set to be implemented on October 15.

Trade bodies remain optimistic that their concerns will be addressed prior to the enforcement of the new charge.

Earlier this month, the National Payments Corporation of India (NPCI) dismissed claims from certain media outlets suggesting that GST on UPI Merchant Discount Rate (MDR) would burden small merchants and increase the cost of digital payments.

"This is not accurate. MDR applies solely to P2M transactions exceeding Rs 2,000. Transactions below this threshold will continue to incur zero MDR and thus have no GST implications," NPCI clarified in a statement.

Government statistics reveal that transactions under Rs 2,000 account for over 96% of UPI merchant transaction volume.

Consequently, the vast majority of UPI payments will not incur MDR, and therefore, no GST on MDR.