Supreme Court declines stay on MDR for UPI payments above ₹2,000
In short
The Supreme Court did not stop the new charge on some UPI payments above ₹2,000. Reports say the policy is due to start on October 15 and charges 0.4% on those transactions.
The case is still open, and the Centre has been asked to explain the basis for the fee. It is not yet known whether the rule will change before it begins.
What the reporting says
The Supreme Court declined to stay the government’s new merchant discount rate framework on UPI transactions above ₹2,000, with the policy set to take effect on October 15. Reports said the court asked the Centre to explain the basis for the charges and notices were issued to the government and financial organisations. What remains unknown is the final outcome of the PIL challenging the levy and whether the framework will change before it starts.
Why it matters
The Supreme Court declined interim relief against the government’s MDR framework for UPI payments above ₹2,000 and asked the Centre to explain the basis for the charge. The reported policy sets a 0.4% fee and is due to begin on October 15. The matter affects users, merchants, payment firms and banks, but the final legality of the levy remains undecided.