The Supreme Court will tomorrow hear a plea challenging the Centre’s decision to impose a Merchant Discount Rate (MDR) on specified UPI person-to-merchant transactions of over 2,000 rupees.
Ending nearly six years of fully free UPI payments, the government has introduced a 0.4 per cent fee on transfers of over 2,000 Rs made to merchants through the UPI platform from October 15, while explicitly ring-fencing everyday person-to-person transactions and small payments from any charge. The MDR will be capped at 300 Rs for payments of 75,000 Rs and above.
Essential and thin-margin sectors — railways, telecom, insurance, fuel and agricultural inputs — will pay a flat MDR of 5 Rs per transaction above 2,000 Rs.
Payments into mutual funds, securities and through stockbrokers and dealers will attract 0.02 per cent MDR, also capped at 300 Rs. Bench of Chief Justice of India Justice Surya Kant and Justices Joymalya Bagchi and V Mohana will hear the plea.
The Public Interest Litigation (PIL) filed by advocate Anjan Datta has challenged the Centre’s decision. The plea alleged that the levy has been introduced without adequate statutory safeguards, transparency or public consultation.
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