{"id":13209,"date":"2026-09-28T09:33:11","date_gmt":"2026-09-28T09:33:11","guid":{"rendered":"https:\/\/theeaglenews.co.in\/?p=13209"},"modified":"2026-09-28T09:33:11","modified_gmt":"2026-09-28T09:33:11","slug":"sc-seeks-centres-response-on-plea-challenging-mdr-on-upi-payments-above-rs-2000","status":"publish","type":"post","link":"https:\/\/theeaglenews.co.in\/?p=13209","title":{"rendered":"SC Seeks Centre\u2019s Response on Plea Challenging MDR on UPI Payments Above Rs. 2,000."},"content":{"rendered":"
<\/div>

SC Seeks Centre\u2019s Response on Plea Challenging MDR on UPI Payments Above Rs. 2,000.<\/h1>\n

 <\/p>\n

New Delhi:<\/p>\n

 <\/p>\n

The Supreme Court on Monday sought responses from the Centre, the Reserve Bank of India (RBI) and other concerned authorities on a petition challenging the introduction of Merchant Discount Rate (MDR) on certain Unified Payments Interface (UPI) transactions above Rs. 2,000.<\/p>\n

A three-judge bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V. Mohana directed the respondents to file their counter affidavits within four weeks.<\/p>\n

The court, however, declined to grant an interim stay on the decision to levy MDR while the matter is pending.<\/p>\n

The petition, filed as a public interest litigation (PIL) by advocate Anjan Datta, challenges the move to impose charges on specified UPI person-to-merchant (P2M) transactions exceeding Rs. 2,000.<\/p>\n

During the hearing, Additional Solicitor General N. Venkataraman, appearing for the Centre, told the bench that around 96 per cent of users of the payment gateway would remain exempt from the new charges.<\/p>\n

Observing the nature of the dispute, the bench remarked that the matter appeared to be “less a legal and more a technical issue.”<\/p>\n

Following the court’s decision to issue notice, counsel for the petitioner sought an interim stay on the implementation of the MDR until the respondents filed their replies. The bench rejected the request.<\/p>\n

The government’s move marks a change after several years during which UPI transactions remained free of MDR. Under the revised framework, a 0.4 per cent MDR will be applicable from October 15 on specified merchant payments exceeding Rs. 2,000.<\/p>\n

The new framework does not impose charges on routine person-to-person (P2P) transactions. According to the details placed before the court, P2P payments account for about 37 per cent of UPI transaction volumes and nearly 70 per cent of the total transaction value.<\/p>\n

The MDR for eligible merchant transactions will be capped at Rs. 300 for payments of Rs. 75,000 or more.<\/p>\n

Certain essential and low-margin sectors, including railways, telecom, insurance, fuel and agricultural inputs, will be subject to a flat Rs. 5 MDR per transaction for payments above Rs. 2,000.<\/p>\n

A separate rate of 0.02 per cent, subject to a maximum of Rs. 300, has been prescribed for payments involving mutual funds, securities, stockbrokers and dealers.<\/p>\n

The case is now expected to come up for further consideration after the Centre, RBI and other respondents submit their counter affidavits within the four-week period fixed by the Supreme Court.<\/p>\n

The proceedings could determine the legal and regulatory framework governing the proposed charges on high-value UPI merchant transactions, while ordinary P2P transfers and specified smaller payments remain outside the levy.<\/p>\n","protected":false},"excerpt":{"rendered":"

SC Seeks Centre\u2019s Response on Plea Challenging MDR on UPI Payments Above Rs. 2,000.   New Delhi:   The Supreme Court on Monday sought responses […]<\/p>\n

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