CAIT rejects reports backing October 2 ‘No UPI Day’ amid MDR debate

The Confederation of All India Traders (CAIT) has distanced itself from reports of a proposed nationwide “No UPI Day” on October 2, making it clear that the traders’ body has neither called for nor endorsed any such protest.

In a statement issued on Friday, CAIT said no decision, resolution or official announcement had been made by the organisation regarding an October 2 programme against the Merchant Discount Rate (MDR) on digital payments.

The traders’ body said claims circulating in the media and on social media attributing the protest call to CAIT were “factually wrong” and appeared to stem from misinformation or a misunderstanding of developments surrounding the MDR issue.

CAIT also clarified that some trade organisations and regional bodies may have announced their own programmes over MDR, but such initiatives were independent decisions and should not be linked to the national traders’ body.

Reports suggesting that CAIT had participated in or endorsed such protests were also incorrect, it said.

The clarification comes as debate intensifies over the proposed MDR on certain UPI transactions and its potential impact on merchants, particularly as digital payments continue to play a central role in India’s retail economy.

The statement, issued by CAIT National President B C Bhartia and Secretary General Praveen Khandelwal, who is also a Member of Parliament, urged media organisations to verify information through the organisation’s official channels before attributing statements or programmes to CAIT.

The organisation also appealed to traders and consumers to rely on verified communications rather than unconfirmed claims circulating on social media.

At the same time, CAIT reiterated that it remains committed to protecting traders’ interests while supporting the growth, security and long-term sustainability of India’s digital payments ecosystem.

The government, meanwhile, has maintained that MDR will apply only to UPI transactions above Rs 2,000 from October 15. Transactions up to Rs 2,000 will continue to carry zero MDR and, consequently, there will be no GST impact arising from MDR on such payments.

According to government data, transactions of up to Rs 2,000 account for more than 96 per cent of UPI merchant transaction volume, meaning the vast majority of merchant UPI transactions would continue without MDR.

The government has also said that RuPay cardholders will not be charged for such transactions.

An official said there would be no reconsideration of the October 15 implementation date and that it would not be extended.

In addition, merchants receiving up to Rs 1 lakh a month through UPI will not be liable to pay MDR and therefore would not face GST on MDR, according to the government.

The government has argued that concerns about GST on MDR creating a broad-based additional burden on merchants are therefore misplaced, stressing that most UPI transactions and small merchants will remain outside the impact of the proposed charge.