In Bhopal, Indore, Gwalior and Jabalpur, shop owners draped black cloth over QR‑code stickers and payment‑confirmation soundboxes, posted “No UPI Day” signs and even wore eyeglasses emblazoned with “No UPI, cash only,” while chanting slogans such as “Aaj ka vyapaar, nakad vyapaar” (today’s business, cash business).
The protests follow the NPCI’s September 15 decision to levy a 0.4% surcharge, plus GST, on person‑to‑merchant (P2M) UPI payments that exceed ₹2,000. The fee, slated to take effect on October 15, will be borne by merchants who must pay their banks and payment processors, while person‑to‑person transfers and payments to small vendors remain exempt.
The demonstrations were organised by the Ahilya Chamber of Commerce and Industry, which says at least 125 trade bodies across the state participated. Akshay Jain, president of Indore’s Retail Garment Association and joint secretary of the Ahilya Chamber, told ANI that the protest aims to draw the government’s attention to traders’ concerns and to prevent a cost increase that could fuel inflation.
Traders argue that the additional charge will force them to raise prices or absorb the cost, potentially pushing them to abandon digital payments altogether. “The government is applying a 0.4% + GST charge on us. This is increasing inflation,” said Abhishek Jain, president of Bhopal’s Chowk Bazar Vyapaari Sangh. He warned that continued pressure could compel merchants to revert to cash transactions after the October deadline.
Since adopting digital payments in 2016, traders claim they have moved about 85% of their business onto UPI platforms. They contend that the new surcharge undermines a system they helped build and are urging the government to reconsider the rate to avoid further price pressures on consumers.