SC refuses interim stay on UPI MDR, directs Centre to file counter within 4 weeks
· Business · Times of India, Zee News
The Supreme Court issued notice to the Centre, RBI and NPCI on a plea challenging Gazette notifications introducing merchant discount rate charges on UPI transactions above Rs 2,000, set to take effect from October 15. A bench of Chief Justice Surya Kant and Justices Bagchi and Mohana directed respondents to file counter affidavits within four weeks while questioning the legal incidence of the charges, with Justice Bagchi asking 'what is the service' behind the new levy. The court declined to stay the charges, observing the issue was 'less legal and more technical'. The Union government told the Court that 96 per cent of payment gateway users would be exempt from the MDR on high-value UPI transactions. Mobile phone retailers have announced a 'No UPI Day' protest on October 2 against the 0.4 per cent MDR on eligible transactions.
Why it matters
The new MDR charges on specified person-to-merchant UPI transactions above Rs 2,000 will take effect from October 15, potentially increasing costs for businesses that may pass them to consumers, while 96 per cent of payment gateway users qualify for exemption.
Read the original report — Times of India
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