Plea in Supreme Court against imposition of MDR on UPI payments of above ₹2,000
A Public Interest Litigation (PIL) has been filed in the Supreme Court challenging the Indian government's decision to impose a 0.4% Merchant Discount Rate (MDR) on UPI person-to-merchant transactions exceeding ₹2,000, effective October 15. The plea argues the levy lacks statutory safeguards, transparency, and public consultation.
Why it matters
This legal challenge could significantly impact the cost of digital payments for merchants and consumers in India, potentially affecting the growth and accessibility of UPI, a widely used payment system.
A public interest litigation (PIL) matter has been filed in the Supreme Court, challenging the Centre's decision to impose a merchant discount rate (MDR) on specified UPI person-to-merchant transactions of above ₹2,000, saying the levy has been introduced without adequate statutory safeguards, transparency or public consultation.
The government has introduced a 0.4% fee on UPI payments of more than ₹2,000 made to merchants from October 15. Under this, a merchant discount rate (MDR) of 0.4% is to be levied on person-to-merchant transactions of above ₹2,000. However, no MDR is to be levied on UPI transactions of up to ₹2,000.
The plea has been filed by advocate Anjan Datta, challenging the Centre's September 14 notification and the MDR framework announced on September 15, which is stated to come into effect from October 15.
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