- MP Praveen Khandelwal led a trade delegation to meet Finance Minister Sitharaman on UPI MDR concerns
- AIMRA and AICPDF withdrew the planned NO UPI DAY protest set for October 2, 2026
- Delegation requested deferment of UPI MDR due to festive season and business activity
A high-level trade delegation led by Member of Parliament and Secretary General of CAIT, Praveen Khandelwal, along with Kailash Lakhyani, Founder Chairman of the All India Mobile Retailers Association (AIMRA), met the Union Minister of Finance Nirmala Sitharaman at her office on Friday, September 30 to submit a joint representation highlighting concerns over the proposed UPI Merchant Discount Rate (MDR).
Following the discussion, AIMRA and AICPDF formally decided to withdraw the proposed "NO UPI DAY" scheduled for October 2, 2026, according to a joint statement shared by the delegation.
The delegation submitted a joint statement on behalf of the AlMRA and the All India Consumer Products Distributors Federation (AICPDF), reflecting on the operational challenges and recommendations of traders and retailers across the country.
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Here are the key requests placed by the delegation before the Finance Minister -
Defer Implementation
The delegation has urged the government to postpone the proposed UPI MDR due to the upcoming festive season and heightened mainline business activity.
Gradual And Phased Implementation
Instead of introducing a 0.40% charge immediately, the delgation suggested to adopt a phased approach by initially introducing MDR at 0.20% during FY 2026–27, followed by annual increments of 0.05% until reaching 0.40%, which will help merchants to adapt without any sudden financial disruption.
Raise Threshold Limit
The delegation has proposed to re-evaluate the Rs 1 lakh threshold limit and consider raising it to Rs 5 lakh to align with the real-world operational realities and transaction volumes of merchants.
Skip M2M Transactions
Merchant-to-Merchant (M2M) business transactions should be exempted from the purview of MDR, highlighting their importance to the trading ecosystem and liquidity, it said.
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Form Expert Committee
The delegation has urged to constitute a dedicated special committee to examine these industry concerns thoroughly and recommend a balanced way forward.
"The Hon'ble Finance Minister accorded a very patient and attentive hearing to the concerns raised, which have a direct bearing on millions of merchants across the country, and assured that the issues would be duly considered and addressed. Mainline retail and distribution sectors express full faith in the Government of India," the delegation said.
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