UPI charges: SC refuses stay on 0.4% MDR; issues notice to govt, RBI, NPCI

The Supreme Court on Monday sought responses from the Centre and other parties on a plea challenging the imposition of Merchant Discount Rate (MDR) on UPI payments above Rs 2,000. The court refused to stay the Centre’s decision to levy MDR on specified person-to-merchant UPI transactions exceeding Rs 2,000 from October 15 and directed the respondents to file their counter affidavits within four weeks.

During the hearing, the Centre informed the court that 96 per cent of people using the UPI gateway would remain exempt from the charge. Observing that the issue appeared “less legal and more technical,” the bench directed the parties to place the relevant material on record.