A ‘No UPI Day’ was observed in Berhampur city of Ganjam district on Friday as the Ganjam Chamber of Commerce organised a protest against the proposed Merchant Discount Rate (MDR) on certain UPI transactions.
As part of the protest, traders took out a bike rally through the city and appealed to people to avoid making UPI payments. The demonstration focused on concerns among local businesses over the potential financial burden of charges on high-value digital transactions.
Traders Oppose Proposed UPI Charges
The traders’ organisation has demanded that local shops and businesses be kept outside the proposed digital transaction charges. Traders argue that additional costs could increase their operational expenses at a time when businesses are already dealing with taxes and other transaction-related charges.
The proposed MDR has become a point of concern particularly for businesses that frequently receive large-value digital payments. Traders participating in the Berhampur protest questioned why merchants should bear additional costs for UPI transactions.
Proposed MDR For Transactions Above Rs 2,000
The protest comes ahead of the proposed implementation of MDR on certain commercial UPI transactions above Rs 2,000. Under the proposal cited by traders, a charge of 0.4 per cent would apply to eligible high-value merchant transactions.
The government has clarified that the proposed charge would be applicable to merchants and would not be directly collected from customers. However, traders and consumers have raised concerns that businesses could eventually factor the additional expense into the prices of goods and services.
Petrol pump operators, gold traders, wholesale businesses and other establishments that handle high-value transactions are among those expressing concerns about the proposed charges.
UPI Usage Remains High
The protest comes amid continued widespread use of UPI across the country. Data cited from the National Payments Corporation of India (NPCI) showed that UPI recorded around 24.07 billion transactions in September, compared with approximately 24.51 billion transactions in August.
While the overall monthly transaction count declined compared with August, the average number of transactions per day increased to around 802 million in September from about 791 million in August.
Berhampur Traders Raise Cost Concerns
Traders in Berhampur said digital payments have become an important part of everyday commerce, making the cost of UPI transactions a significant issue for businesses.
Trader Ch. Rabindra said merchants already deal with GST, taxes and other expenses and questioned the need for an additional financial burden associated with digital payments.
Consumers participating in the discussion also expressed concern that increased costs for businesses could eventually affect retail prices if merchants attempt to recover the additional expense.
The ‘No UPI Day’ protest in Berhampur has therefore brought renewed attention to the debate over merchant charges, digital payment costs and the proposed MDR on eligible high-value UPI transactions.
