Supreme Court declines stay on UPI MDR, seeks Centre reply
In short
The Supreme Court did not stop the new UPI merchant charge rule. The rule is reported to add a 0.4% fee on certain UPI payments above ₹2,000, and it is set to start on October 15.
This matters for users, merchants and payment firms because the charge could change how UPI payments are used. The court has asked the Centre to explain the ₹2,000 threshold, but the final outcome is still unknown.
What the reporting says
The Supreme Court refused to stay the Centre’s new merchant discount rate framework for select UPI transactions, according to publisher summaries of the hearing. The policy is reported to impose a 0.4% charge on specific Unified Payments Interface payments above ₹2,000 and is set to take effect on October 15. The court has asked the Centre to explain the basis for the threshold, while the longer-term legality remains under challenge.
Why it matters
The Supreme Court declined to block the Centre’s new MDR policy for selected UPI transactions and asked for an explanation of the ₹2,000 threshold. Reported summaries say the framework adds a 0.4% charge on certain payments and is due on October 15. The legal challenge is still active, so the eventual effect on merchants, payment providers and UPI usage remains uncertain.