Supreme Court Questions UPI MDR Charges and Seeks Government Response
· Business · LiveMint, Indian Express, Moneycontrol
The Supreme Court on Monday declined to stay the Centre's decision to levy fees on select UPI transactions above ₹2,000, but sought an affidavit from the government explaining the legal basis for introducing a new Merchant Discount Rate. The apex court issued notices to the Reserve Bank of India and the National Payments Corporation of India while hearing a petition filed by advocate Anjan Datta in Mumbai. A bench headed by Chief Justice Surya Kant questioned the executive scope of the charge, noting that the government described it as neither a tax nor a fee. Additional Solicitor General N. Venkataraman defended the move, stating that the charge is a settlement fee shared among payment ecosystem participants rather than a statutory tax collected by the government. The new 0.4% MDR on person-to-merchant transactions of ₹2,000 or more is scheduled to take effect on 15 October.
Why it matters
Merchants and digital payment operators across India face new transaction costs as the court examines the legality of the upcoming MDR levy.
Read the original report — LiveMint
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.