The Supreme Court refused to stay the 0.4% MDR on specified UPI person-to-merchant payments above Rs 2,000, due from Oct 15. It issued notice to the Centre, RBI and NPCI to respond in four weeks.
UPI MDR Stays: Supreme Court Refuses Interim Stay
The new UPI merchant fee is going ahead for now. The Supreme Court declined an interim stay on the 0.4% charge for payments above Rs 2,000, but agreed to examine the challenge.
The Supreme Court has refused to grant an interim stay on the merchant discount rate (MDR) on certain UPI payments. The charge is due to take effect on October 15.
What the Court Did
The bench declined to pause the charge but agreed to examine the challenge. It asked the Centre, the RBI and the NPCI to respond within four weeks.
The Petition
The case is a public interest litigation filed by advocate Anjan Datta. It challenges the decision to impose MDR on specified UPI person-to-merchant transactions above Rs 2,000.
What the Charge Is
The government has introduced a 0.4% fee on UPI transfers to merchants worth more than Rs 2,000, from October 15. Everyday person-to-person transactions and small payments are explicitly ring-fenced from any charge.
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Support Our WorkWhat It Means for You
- Sending money to friends and family: no charge
- Paying a merchant Rs 2,000 or less: no charge
- Paying a merchant above Rs 2,000: the 0.4% fee applies to specified transactions, and is charged to the merchant side
Whether merchants pass the cost on to customers is a separate question. Small shops with thin margins may add surcharges or push cash. The final outcome depends on the court hearing after the four-week reply window. Reported by ThePrint.
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