Supreme Court to hear challenge to UPI MDR on Monday
In short
The Supreme Court will hear a challenge on Monday to the government’s plan to charge MDR on some UPI merchant payments above Rs 2,000. The report says the fee is 0.4% from October 15, while small payments and person-to-person transfers stay free.
This matters for merchants, payment users and UPI companies because costs could rise on some transactions. The court’s decision and whether the rule will change are still unknown.
What the reporting says
The Supreme Court will hear on Monday a plea challenging the Centre’s decision to impose a merchant discount rate on specified UPI person-to-merchant transactions above Rs 2,000. The reporting says the government set a 0.4% fee from October 15, while keeping person-to-person transfers and small payments free, and capping the fee at Rs 300 for payments of Rs 75,000 and above. The court outcome is not stated.
Why it matters
The Supreme Court is set to hear a PIL challenging the Centre’s MDR framework for UPI merchant payments above Rs 2,000. The reporting says the government’s plan starts on October 15, sets a 0.4% fee, and caps the charge at Rs 300 for payments of Rs 75,000 and above. The impact could fall on merchants and payment rails, but the legal outcome is still unknown.