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Customers may not be able to use UPI at mobile stores on October 2; why retailers are protesting | Mint
INCOME TAX
28 Sept 2026

Customers may not be able to use UPI at mobile stores on October 2; why retailers are protesting | Mint

Mobile retailers will hold a 'No UPI Day' on October 2, refusing UPI payments. They oppose a new 0.4% merchant discount rate (MDR) on UPI transfers to merchants above ₹2,000, starting October 15. Merchants pay this, not customers. Person-to-person transfers and small merchant payments stay free. It means slightly lower margins on big-ticket UPI sales. Check your UPI settlement charges after October 15.

Key Statutory Highlights

  • The All India Mobile Retailers Association (AIMRA) has called a 'No UPI Day' on October 2, when mobile shops may not accept UPI payments.
  • From October 15, a 0.4% merchant discount rate applies to UPI transfers to merchants above ₹2,000, and merchants pay it, not customers.
  • AIMRA says the levy could cost small mobile retailers ₹2,000 to ₹12,000 a month, and around ₹40 crore per month across India.
Actionable Advice for Taxpayers / Founders:If you accept UPI at your shop, speak to your bank or payment provider before October 15 about how the 0.4% charge will come out of your settlements, and review your UPI transaction records for the first month. For your exact numbers, check with your CA.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
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