Mobile retailers across India, including those in coastal Karnataka, will observe a 'UPI-Free Day' on October 2nd. The All India Mobile Retailers Association (AIMRA), representing over 1.5 lakh small mobile retailers nationwide, announced the symbolic protest from Udupi on September 26th. This action opposes the 0.4% Merchant Discount Rate (MDR) set to apply from October 15th on UPI merchant payments exceeding Rs 2,000.
AIMRA has already appealed to Union Finance Minister Nirmala Sitharaman regarding the new charge. B. Suhas Kini, AIMRA's State General Secretary from Udupi, highlighted the severe impact on retailers. He stated that smartphone prices have surged by 70% due to global component cost increases, with a 5G phone previously costing Rs 10,000 now selling for Rs 17,000. This has already led to a 40% decline in shop sales. For retailers operating on a slim 1% net profit margin, a 0.4% MDR fee feels like an additional blow to their already struggling businesses.
While an exemption exists for small traders conducting less than Rs 1 lakh in monthly UPI QR transactions, Kini explained its irrelevance for most mobile shops. Selling phones priced between Rs 10,000 and Rs 17,000 means retailers can easily cross this monthly threshold with just a few sales, rendering the exemption ineffective for their specific trade.
The association's key demands include a complete exemption from UPI MDR charges for small and medium retailers and mandatory consultation with trade bodies before implementing any such fees. AIMRA State President Ravikumar and B. Suhas Kini jointly asserted that while they fully support the Digital India initiative, this new charge threatens the survival of small businesses already facing a downturn. On October 2nd, shops will not accept any UPI transactions, symbolically covering UPI QR codes, sound boxes, and scanners with black cloth to mark their protest. They urged the government to respond immediately to their demands.
Image: varthabharati.in
📰 Source: Vartha Bharati Udupi