Supreme Court refuses to stay 0.4% MDR on specified UPI payments
The Supreme Court declined to stay the Centre’s decision to impose a 0.4% Merchant Discount Rate on specified UPI transactions. The charge will apply to person-to-merchant payments above ₹2,000. The framework is scheduled to take effect from October 15, 2026. The case concerns the financial sustainability of the UPI ecosystem and the impact of transaction charges on merchants and consumers. The decision allows the government’s policy to remain operational while the legal challenge continues. The ruling is relevant to questions on digital payments, judicial review, and financial regulation.
Try the question
Which rate of MDR is proposed for specified UPI person-to-merchant transactions above ₹2,000?
Answer: (c) 0.4%
The correct answer is (c) 0.4%.