📷 Image: Wikimedia Commons / Jigarpatel2299
Business
UPI Transactions Suspended Across Gujarat Over Merchant Discount Rate Waiver Demand
✍️ Bhaskar English
🗓 02 Oct 2026, 02:17 PM
👁 8
Traders in Rajkot and Vadodara halted UPI payments statewide, citing a demand for a waiver of the merchant discount rate on Gandhi Jayanti.
The Unified Payments Interface (UPI) network was temporarily suspended across Gujarat after a coordinated demand from merchants for a waiver of the merchant discount rate (MDR). Traders in major commercial hubs such as Rajkot and Vadodara led the protest, aligning it with the observance of Gandhi Jayanti.
State authorities reported that the suspension affected both online and point‑of‑sale transactions, prompting merchants to seek relief from the fees levied on each digital payment. The demand for an MDR waiver reflects ongoing concerns among small and medium‑size businesses about the cost of digital transactions.
While the UPI halt disrupted routine payments for consumers, officials indicated that discussions with banking associations and payment service providers are underway to resolve the dispute. No timeline for reinstating the service has been announced.
The protest underscores the broader tension between the push for digital payments and the financial burden on merchants, a debate that has intensified since the nationwide rollout of UPI services.
Stakeholders are expected to meet in the coming days to negotiate a possible waiver or reduction in the MDR, aiming to restore normal payment operations before the end of the month.
State authorities reported that the suspension affected both online and point‑of‑sale transactions, prompting merchants to seek relief from the fees levied on each digital payment. The demand for an MDR waiver reflects ongoing concerns among small and medium‑size businesses about the cost of digital transactions.
While the UPI halt disrupted routine payments for consumers, officials indicated that discussions with banking associations and payment service providers are underway to resolve the dispute. No timeline for reinstating the service has been announced.
The protest underscores the broader tension between the push for digital payments and the financial burden on merchants, a debate that has intensified since the nationwide rollout of UPI services.
Stakeholders are expected to meet in the coming days to negotiate a possible waiver or reduction in the MDR, aiming to restore normal payment operations before the end of the month.