The Confederation of All India Traders (CAIT) on Friday, 25 September 2026, categorically denied issuing or endorsing a proposed nationwide 'No UPI Day' on 2 October, stating that reports attributing such a call to the organisation were 'factually wrong'. The clarification comes amid a charged debate over the reintroduction of Merchant Discount Rates (MDR) on UPI transactions, set to take effect from 15 October.

CAIT's Official Position

In a joint statement, CAIT National President B C Bhartia and Secretary General Praveen Khandelwal — who also serves as a Member of Parliament — said no decision, resolution, or official announcement had been made regarding any programme to observe 2 October as a 'No UPI Day'. The body described circulating claims as the result of 'misinformation or misinterpretation' and urged media organisations to verify information through official CAIT channels before publishing or broadcasting statements in its name.

CAIT also asked traders and consumers to rely solely on official communications rather than speculative posts circulating on social media platforms.

Distancing from Regional Trade Bodies

The national traders' body sought to separately distance itself from protests and programmes announced independently by regional trade organisations on the MDR issue. According to CAIT, such actions represent the individual decisions of those organisations and must not be attributed to the national body. It said any reports suggesting CAIT had participated in or endorsed such actions were erroneous.

Notably, this episode highlights the fragmented nature of India's organised trade lobby, where regional bodies frequently act — and communicate — independently of national federations, creating scope for attribution errors.

What the Government Has Said on MDR

The Government, in its outreach to traders, has clarified that MDR will apply only on UPI transactions above ₹2,000. Transactions up to ₹2,000 will continue to attract zero MDR and therefore zero GST impact. According to government data, transactions of up to ₹2,000 constitute more than 96% of UPI merchant transaction volume, meaning the overwhelming majority of UPI payments will not attract MDR or the associated GST charge.

Additionally, RuPay cardholders will not be charged anything. Merchants with monthly UPI receipts of up to ₹1 lakh are also not liable to pay MDR and are therefore unaffected by the GST-on-MDR concern, an official said. The government has also ruled out any extension of the 15 October implementation date, making clear there will be no rethink on MDR.

Why This Matters for Digital Payments

The UPI ecosystem processes billions of transactions annually and has become the backbone of India's digital payments infrastructure. The reintroduction of MDR — even in limited form — has reignited a long-standing tension between merchant affordability and the financial sustainability of payment networks. Critics argue that even a small cost burden on higher-value transactions could deter adoption among mid-tier merchants, while proponents say the current zero-MDR model is not commercially viable in the long run.

CAIT, while distancing itself from the protest call, reiterated its commitment to protecting traders' interests alongside supporting the growth, sustainability and security of India's digital payments ecosystem — a position that acknowledges the complexity of the debate.

What Happens Next

With the 15 October MDR implementation date confirmed and no government review in sight, trade organisations — at the national and regional level — will need to decide whether to escalate their response or engage through dialogue. CAIT's clarification is likely an attempt to maintain its position as a constructive interlocutor with both the government and traders, rather than be seen as leading a disruptive campaign ahead of the rollout.