UPI MDR row: CAIT-led delegation meets FM Sitharaman, protest withdrawn
Trade leaders withdraw No UPI Day protest after meeting FM Sitharaman regarding the proposed 0.40% MDR on UPI transactions above Rs 2,000.
In a significant development for the digital payments landscape, major trade bodies have decided to call off their planned protests following a high-level meeting with Union Finance Minister Nirmala Sitharaman. The decision comes after intense discussions regarding the proposed Merchant Discount Rate (MDR) of 0.40 per cent on UPI transactions exceeding Rs 2,000.
Protest Call Cancelled After Constructive Dialogue
The All India Consumer Products Federation (AICPDF) and the All India Mobile Retailers Association (AIMRA) have officially withdrawn their "No UPI Day" protest, which was originally scheduled for October 2, 2026. This sudden reversal follows a meeting at Kartavya Bhawan in New Delhi, where a delegation of approximately 20 senior trade leaders presented their grievances to the Finance Minister.
Praveen Khandelwal, Secretary General of the Confederation of All India Traders (CAIT) and MP from Chandni Chowk, briefed the media on the outcome. He noted that the decision to withdraw the protest was rooted in the constructive discussions held with the Finance Minister and the assurance that the trading community's concerns would be given due consideration.
Key Concerns Raised by Traders
The primary tension revolved around the potential financial impact of the proposed MDR on the merchant ecosystem. During the discussions, trade representatives highlighted several critical points:
- Impact on MSMEs: Concerns were raised regarding how the additional charge would affect small and medium-sized businesses.
- Financial Burden: Leaders emphasized the need to prevent an undue financial load from being placed on merchants.
- Digital Growth Balance: While supporting the digital revolution, traders argued for a policy that balances transaction growth with merchant sustainability.
Commitment to Digital India
Despite the friction over the MDR, the delegation reaffirmed its unwavering support for the Digital India mission. They described UPI as a monumental achievement in India's digital payments ecosystem and clarified that their objective was never to oppose digital transactions, but to ensure a balanced policy framework.
Finance Minister Nirmala Sitharaman reportedly listened to the various sectoral concerns and assured the representatives that the government is committed to promoting digital transactions while simultaneously protecting the interests of all stakeholders involved.
Prominent Leaders in Attendance
The delegation included a wide spectrum of trade representation, featuring:
- B C Bhartia: National President, CAIT
- Dhairyshil Patil: President, AICPDF
- Kailash Lakhyani: Chairman, AIMRA
- Pankaj Arora: President, All India Jewellers & Goldsmith Federation
The meeting concluded with a sense of optimism, as trade organizations expressed confidence that ongoing dialogue between the government and industry bodies will help build a sustainable framework for India's digital economy, safeguarding the livelihoods of millions of traders and small businesses.