No Interim Stay on Centre's Decision to Impose MDR on UPI Payments: Supreme Court
The bench refused an interim stay and sought the Centre’s response on whether the merchant charge is a tax, fee or expropriation.
- On Monday, the Supreme Court refused a plea for an interim stay of the government's decision to levy a 0.4% charge on merchants for specified UPI Person-to-Merchant transactions in excess of ₹2,000.
- Ending nearly six years of fully free UPI payments, the government introduced a 0.4% fee on transfers worth over ₹2,000 to merchants, while Person-to-person transfers remain exempt and represent 70 per cent of transaction value.
- Additional Solicitor General Venkataraman told the Bench that 96 per cent of users are exempt; for transactions of ₹75,000 and above, the MDR is capped at ₹300, while essential sectors pay a flat ₹5 per transaction.
- The three-judge Bench headed by Chief Justice of India Surya Kant issued notice to the Union of India, RBI, NPCI, and the UPI Steering Committee regarding a constitutional challenge to Section 10A of the Payment and Settlement Systems Act.
- Observing that the matter is "less a legal and more a technical issue," the Bench directed the filing of counter affidavits within four weeks, following advocate Anjan Datta's petition challenging the MDR framework.
28 Articles
28 Articles
SC Questions Legal Basis, Character of Charges on Commercial UPI Transactions as Per New Regime; Seeks Centre’s Reply
Get latest articles and stories on India at LatestLY. A bench comprising Chief Justice of India (CJI) Surya Kant and Justices Joymalya Bagchi and V Mohana sought responses from the Central government, the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) on a plea challenging the two Gazette notifications that announced the charges and the process for such charges. India News | SC Questions Legal Basis, Character …
SC refuses stay on UPI MDR above Rs 2000, notice to Centre
New Delhi: The Supreme Court (SC) on Monday, September 28, refused to stay the Centre’s decision to impose a Merchant Discount Rate (MDR) on specified Unified Payments Interface (UPI) person-to-merchant transactions of over Rs 2,000, which is set to come into effect from October 15. The court sought responses from the Centre and others on … Get the latest updates in Hyderabad City News, Technology, Entertainment, Sports, Politics and Top Stories…
Supreme Court to Govt on MDR: A petition filed in the Supreme Court against the UPI MDR, which will be implemented from October 15, was heard on Monday and the court has asked several questions to the government and RBI regarding this.
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