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 have threatened to remove QR codes and put up cash-only notices if a proposed merchant discount rate (MDR) charge is implemented. The chamber says traders will keep accepting UPI until then.
What the threat means for shoppers
This is a conditional warning, not a citywide UPI shutdown. If the reported charge takes effect, the associations say participating shops may switch to cash-only payments. Until then, the chamber says its affiliated traders will continue accepting UPI. The report does not establish that every Indore shop belongs to the chamber or will follow the threat. The Times of India’s report describes a five-day campaign across city markets to explain the proposal and build support.
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What is known about the proposed charge
Coverage of the Sept. 23 protest described the proposal as a 0.4% MDR on certain merchant UPI transactions above ₹2,000. That rate and threshold are reported details, not verified final terms. Free Press Journal coverage characterizes the charge as proposed; the available reporting does not establish the issuing authority, official text, exemptions, or an effective date.
MDR is a charge associated with processing a merchant payment. The reports concern a possible cost to merchants; they do not establish a new fee payable by customers. Shoppers should not infer from this coverage that they are required to pay an extra charge for using UPI.
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How the protest developed
- Sept. 21: The Times of India reported that more than 125 Indore 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, 2026, IST: The Times of India reported the later conditional threat and five-day mobilisation campaign, while saying shops would keep accepting UPI until the reported charge was implemented.
Why the associations object
Chamber president Ramesh Khandelwal said the proposed MDR charges would squeeze already thin profit margins and that traders could not afford an additional cost on every transaction. Joint secretary Akshay Jain cited rising operating costs, competition, and limited margins, and said digital-payment charges could add to traders’ burden during the festive season. These are the chamber representatives’ stated concerns, not independently established findings about every merchant.
What shoppers should check at a shop
For now, ask the individual shop which payment methods it accepts. The reporting describes a campaign and a conditional threat; it does not establish that UPI is unavailable across Indore. If a shop changes its policy, that is a merchant’s acceptance decision, not proof that the reported proposal has become an official rule.
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