Business

Trade bodies drop ‘No UPI Day’ call after meeting with Finance Minister

NEWZA Editorial Team•

⚡ Key Financial Takeaways

  • The 0.4% fee on merchant payments above Rs 2,000 will still be implemented from October 15.
  • A delegation of about 20 senior trade leaders met Finance Minister Nirmala Sitharaman in New Delhi on Wednesday.
  • The call to observe October 2 as a ‘No UPI Day’ was withdrawn by the Confederation of All India Traders, the All India Consumer Products Federation and the All India Mobile Retailers Association.
  • The delegation, led by MP Praveen Khandelwal, expressed concerns about the fee’s impact on small and medium enterprises.
  • Both organisations said the concerns raised would receive due consideration following the meeting.

💡 Why It Matters

The decision to cancel the ‘No UPI Day’ reflects a shift in the dialogue between the government and the trade community. While the surcharge remains, the acknowledgement that concerns will be considered could influence how the fee is applied or communicated to merchants, potentially mitigating some of the anticipated cost pressures on small and medium enterprises.

Background The government announced a 0.4 percent surcharge on merchant payments exceeding Rs 2,000, a move that sparked protests from trade bodies concerned about the burden on small and medium‑sized businesses.

Meeting with the Finance Minister On Wednesday, a delegation of roughly 20 senior trade leaders from across India convened with Finance Minister Nirmala Sitharaman in New Delhi. The group, headed by MP Praveen Khandelwal of Chandni Chowk and secretary‑general of the Confederation of All India Traders (CAIT), sought to discuss the potential impact of the fee.

Withdrawal of the ‘No UPI Day’ call The All India Consumer Products Federation and the All India Mobile Retailers Association had earlier announced a “No UPI Day” for October 2 to protest the new surcharge. After constructive discussions with the minister, both organisations announced that they would drop the call. Khandelwal explained that the decision followed assurances that the concerns of the trading community would be taken seriously.

Fee remains in force Despite the withdrawal of the protest day, the 0.4 percent fee will still be implemented on October 15. The government has not indicated any change to the timeline or the rate.

Implications for businesses The fee is expected to affect merchants who process payments above the Rs 2,000 threshold, a category that includes many small retailers and service providers. The trade bodies’ withdrawal of the protest day may signal a willingness to engage with the government, but the fee’s impact on operating costs remains a concern for the sector.

🏛️ Background & Context

UPI (Unified Payments Interface) has become the dominant digital payment platform in India, handling billions of transactions daily. The proposed surcharge was introduced to generate additional revenue for the government but was met with resistance from merchants who fear increased transaction costs.

👁️ What To Watch Next

Observers should monitor any subsequent policy adjustments or clarifications regarding the surcharge’s application. Additionally, the government’s response to the trade bodies’ concerns and any potential amendments to the fee structure will be key developments to watch in the coming weeks.

Topics:#UPI#Finance Minister#Small Business#Trade Bodies#India
Back to Home