SC to hear plea against UPI MDR on payments above ₹2,000
In short
The Supreme Court will hear a challenge on Monday to the government’s plan to charge a fee on some UPI payments above ₹2,000. The fee is set to start on October 15, and the report says it will be 0.4% for some merchant payments, with a cap of ₹300 on payments of ₹75,000 or more.
This matters because it could end free UPI use for some merchant transactions. It is still unknown whether the court will stop the fee.
What the reporting says
The Supreme Court is set to hear a plea on Monday challenging the Centre’s decision to impose a Merchant Discount Rate on certain UPI person-to-merchant payments above ₹2,000. The reported framework says a 0.4% fee will begin on October 15, with a cap of ₹300 for payments of ₹75,000 and above. The court outcome is still unknown, as is the response for merchants and payment users.
Why it matters
The Supreme Court is scheduled to hear a petition against the Centre’s MDR framework for UPI person-to-merchant transactions above ₹2,000. The reporting says the charge is due to take effect on October 15, with a 0.4% fee and a ₹300 cap on payments of ₹75,000 and above. The immediate legal outcome is not known, and the effect on merchants in thin-margin sectors remains uncertain.