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Indore shops have not broadly stopped accepting UPI. The Times of India reports that 125 trade associations affiliated with the Ahilya Chamber of Commerce and Industry will remove QR codes and put up cash-only payment boards only if the reported merchant discount rate (MDR) charge is implemented. The chamber says merchants will continue accepting UPI until then.
What the threat means for shoppers
The announcement is conditional, not a citywide cash-only switch already in effect. If the reported charge is implemented, the affiliated associations say participating merchants would stop offering UPI by removing QR codes and displaying cash-only notices. The report does not establish that every Indore trader belongs to those associations or will take part.
The chamber also announced a five-day campaign in city markets to explain the proposal and build support. Its stated concern is that added payment costs would further narrow merchants’ margins. Chamber president Ramesh Khandelwal said the proposed charges would squeeze already thin margins; that is the chamber’s rationale, not an independently verified finding about every shop.
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Coverage of the earlier Indore protest described the measure as a proposed 0.4% MDR charge on certain merchant UPI transactions above ₹2,000, as reported by the Free Press Journal. That is a reported proposal, not a confirmed charge currently in force.
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The available reports do not identify an official final rule or establish its issuing authority, exact scope, exemptions, or effective date. The cited rate and threshold should therefore not be treated as verified final terms. The reports describe a merchant-side cost; they do not establish that customers must pay a fee.
How the Indore protest developed
- Sept. 21: The Times of India reported that more than 125 associations representing around two lakh traders backed the campaign. These are reported participation and representation figures, not independently audited counts.
- Sept. 23: Traders held a symbolic “No UPI Day.” Contemporary coverage described shopkeepers covering QR codes and asking customers to pay in cash.
- Oct. 12 (IST): The Times of India reported the later conditional threat and five-day market campaign, while saying shops would keep accepting UPI until the reported charge was implemented.
The earlier one-day action was a protest; the later announcement describes a sustained change in acceptance only if the proposal takes effect. The Times of India’s report on the conditional threat attributes the 125-association figure to the chamber.
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