You won't be able to make UPI payments at shops on October 2; why exactly will all QR codes stop working? Find out the full story..

If you typically carry only your smartphone instead of cash and use UPI (Google Pay, PhonePe, Paytm) for payments everywhere—from roadside tea stalls to shopping malls—you might face some inconvenience on October 2nd.

In fact, many merchants and shopkeepers across the country are observing 'No UPI Day' on October 2nd. Following this news, many people are wondering if UPI payments will stop altogether starting tomorrow. Let us explain the full story and the reason behind this move.

Why is 'No UPI Day' being observed?
Customers purchasing mobile phones, accessories, and related items at retail stores may face difficulties making UPI payments on October 2nd. This protest by mobile retailers is driven by the proposed 0.4% Merchant Discount Rate (MDR) on UPI transactions. The protest comes as the government prepares to alter the zero-MDR framework that has been in place for UPI payments for nearly six years.

How much will the charges increase?
Under the new rules, merchants will have to pay an additional fee on transfers exceeding ₹2,000 starting October 15th. However, a key aspect of this MDR is that peer-to-peer (P2P) UPI transfers and payments made to small merchants will remain free of charge, just as before.

Why are only mobile retailers protesting?
According to a report by the news agency PTI, this protest is being organized by the 'All India Mobile Retailers Association' (AIMRA). The association has expressed concern that the imposition of an MDR on specific UPI payments could place an additional financial burden on mobile retailers. Speaking about the protest, Tarvinder Singh, Vice President of AIMRA and President for the Delhi-NCR region, stated that mobile retailers will cover their UPI QR codes with black cloth on Gandhi Jayanti (October 2) and will not accept UPI payments. They are also demanding that the MDR structure remain at zero charges, just as it was previously.

Will UPI actually stop working?
The UPI servers are not being shut down by the NPCI or any bank. You will still be able to use UPI freely for transactions with friends and relatives or for online shopping. Shopkeepers participating in this protest may remove their QR codes or refuse to accept UPI payments; in such cases, you might have to pay in cash. However, at large showrooms and shops not participating in the protest, UPI payments will function as usual.

Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.