The Confederation of All India Traders (CAIT) has denied endorsing a nationwide ‘No UPI Day’ on 2 October, as traders plan protests against MDR charges on digital transactions, with official clarifications emphasizing its impartial stance amidst growing merchant unrest.
The Confederation of All India Traders has moved to distance itself from reports that it had backed a nationwide “No UPI Day” on 2 October, saying it has issued no such call and has taken no formal decision on the matter. In a clarification issued by National President B C Bhartia and Secretary General Praveen Khandelwal, the organisation said suggestions that it had endorsed the protest were incorrect and misleading, and warned that any such claim appeared to rest on misinformation or a misunderstanding of its position.
The clarification comes as traders’ groups in Maharashtra and elsewhere prepare symbolic protests over the Merchant Discount Rate, or MDR, on certain UPI transactions. Business Standard reported that the Maharashtra Chamber of Commerce, Industry and Agriculture has been leading the push for a “No UPI Day” on 2 October, with traders planning to cover QR codes and payment devices and to encourage customers to use cash. LiveMint reported that similar messages have been circulated in Maharashtra, while other trade bodies, including the Chamber of Trade and Industry, have also been linked to the broader campaign.
According to the government’s revised framework, UPI payments between individuals will remain free, as will person-to-merchant transactions up to ₹2,000. Charges will apply only to specified merchant payments above that threshold, with a 0.4% MDR on many such transactions and smaller flat fees in some sectors, including railways, telecoms, insurance, fuel and agricultural inputs. Capital-market transactions such as mutual funds and securities will carry a separate rate of 0.02%, capped at ₹300 per transaction.
The Finance Ministry has said the MDR will be borne by merchants and cannot be passed on to customers. It has also said individuals will continue to have unlimited free access to UPI, without monthly limits or tiered caps, and that around 96% of merchant transactions will remain unaffected under the revised structure. CAIT said it remains committed to protecting traders’ interests while supporting the growth and security of India’s digital payments ecosystem, and urged media outlets and the public to rely only on official communications before drawing conclusions about its stance.
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