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Supreme Court refuses stay on UPI MDR fee
The Indian Express··23h ago
The Supreme Court on Monday refused to stay a Merchant Discount Rate on UPI person-to-merchant payments above Rs 2,000. The 0.4 percent MDR takes effect from October 15 after a September 15 government announcement. A bench led by Chief Justice Surya Kant sought replies from the Centre, RBI and others within four weeks. Payments up to Rs 2,000 stay free.
Prism
What It Means For You
- UPI transfers to merchants above Rs 2,000 can attract 0.4 percent MDR from October 15.
- The charge is capped at Rs 300 for transactions above Rs 75,000.
- Person-to-person UPI transfers remain outside MDR at any amount.
What's Happening
- The Court declined an interim stay but kept the challenge alive for affidavits.
- Advocate Anjan Datta's PIL contests the MDR framework.
- The government says MDR sits inside the merchant payment ecosystem, not on customers.
How the fee is structured
- Essential sectors such as railways, telecom, insurance, fuel and farm inputs face a flat Rs 5 MDR above Rs 2,000.
- Mutual funds, securities and brokers face 0.02 percent MDR, capped at Rs 300.
- Utility bills, OTT subscriptions and automated recurring payments are listed as MDR-free.
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