Ghaziabad Traders Protest UPI MDR, Put Up ‘No UPI’ Notices

Traders in Ghaziabad have started protesting the proposed Merchant Discount Rate (MDR) on selected UPI merchant transactions above Rs. 2,000. Several shops have reportedly put up notices informing customers that UPI payments will not be accepted for such transactions from October 15. The move comes amid concerns over the 0.4% MDR that is scheduled to apply to specified person-to-merchant UPI payments above the threshold.

The government’s framework states that the MDR is a merchant-side charge and consumers are not supposed to be directly charged for it. However, traders in Ghaziabad and other markets have argued that the additional transaction cost could squeeze already-thin business margins and may eventually be reflected in prices. Some traders fear that the new fee could also encourage businesses to rely more heavily on cash payments. The proposed framework includes exemptions and different rates for certain categories, while person-to-person UPI transactions remain outside the MDR.