Now Reading: Traders split over ‘No UPI Day’ as SBI vows to block MDR pass-through
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Traders split over ‘No UPI Day’ as SBI vows to block MDR pass-through
Trade associations are divided over the proposed 'No UPI Day' on Friday, 2 October, with some groups backing a symbolic boycott of UPI payments while the Confederation of All India Traders (CAIT) says it has not called for or endorsed the observance. The protest is against the new Merchant Discount Rate (MDR) of 0.4 per cent on specified merchant UPI transactions above Rs 2,000, set to take effect from 15 October.
Following a meeting with Finance Minister Nirmala Sitharaman on Wednesday, 30 September, the All India Consumer Products Distributors Federation (AICPDF) and the All India Mobile Retailers Association (AIMRA) withdrew their earlier call for the protest. However, the Poona Merchants Chamber in Pune and over 1,000 trade associations in Gujarat have said they will participate, with outlets asked to cover UPI QR codes with black cloth and accept cash or cards only.
SBI chairman CS Setty said the bank and NPCI will ensure the MDR is not passed on to consumers through system-driven pricing controls and grievance mechanisms, and that technology to identify exempt transactions will be ready by 15 October. The Supreme Court is also examining the legal basis for the MDR and has sought responses from the Centre, the RBI and the NPCI.
Update, 2 October 2026: SBI chairman CS Setty said the bank and NPCI will use system-driven pricing controls and grievance mechanisms to ensure the MDR is not passed on to consumers, with technology to identify exempt transactions ready by 15 October, Times of India reported on 2 October. Canara Bank CEO estimated the lender could earn around Rs 450 crore from MDR on UPI, CNBC-TV18 reported.
Indian Opinion Analysis
Coverage is uniform on the core facts: a 0.4 per cent MDR on specified merchant UPI transactions above Rs 2,000 starts 15 October, with over 96 per cent of transactions exempt. The Hindu and Times of India highlight trader protests in Dindigul, Pune and Gujarat, while ABP News and BusinessLine focus on September UPI volumes remaining above 24 billion despite a slight monthly dip. Economic Times and CNBC-TV18 detail brokerages and banks assessing the MDR's financial impact. SBI's assurance that it will block cost pass-through, reported by Times of India, and Indian Bank's consideration of partial MDR waivers, reported by BusinessLine, frame the official response. The Supreme Court has sought replies from the Centre, RBI and NPCI, with no date set for the next hearing.
Sources: The Hindu (Dindigul protest), Times of India (Gujarat protest, SBI chairman), Indian Express (Pune protest), ABP News, BusinessLine, CNBC-TV18 (NPCI data, brokerages, banks), Economic Times (GST, MDR breakdown), NDTV Profit (Indian Bank CEO), Mathrubhumi, Morung Express, Livemint, CNBC-TV18 (protest withdrawal, Supreme Court).
Coverage: 21 sources, 2 government-critical, 19 neutral
Sources (21): mathrubhumi.com (neutral report), thehindu.com (government critical), economictimes.indiatimes.com (neutral report), livemint.com (neutral report), indianexpress.com (neutral report), economictimes.indiatimes.com (2) (neutral report), thehindu.com (2) (neutral report), thehindu.com (3) (government critical), abplive.com (neutral report), thehindubusinessline.com (neutral report), thehindubusinessline.com (2) (neutral report), livemint.com (2) (neutral report), ndtvprofit.com (neutral report), livemint.com (3) (neutral report), cnbctv18.com (neutral report), cnbctv18.com (2) (neutral report), morungexpress.com (neutral report), timesofindia.indiatimes.com (neutral report), cnbctv18.com (3) (neutral report), livemint.com (4) (neutral report), timesofindia.indiatimes.com (2) (neutral report)
This brief was synthesised by AI from the 21 sources linked above, so one read covers every framing they carry. Methodology and corrections.
