Supreme Court Refuses Stay On UPI Charges Above Rs 2,000. What It Means For You
This article provides an analysis of the Supreme Court's refusal to stay UPI charges, focusing on the legal ambiguity surrounding the Merchant Discount Rate. It clarifies that the charge is a business-to-business fee rather than a direct tax on consumers.
Why it matters
It addresses public confusion regarding the new UPI fee structure and explores the legal debate over whether these charges constitute a government-sanctioned tax.
UPI MDR Charges: The Supreme Court on Monday refused to stay the new Merchant Discount Rate (MDR) framework for specified UPI transactions above Rs 2,000. However, the court has sought responses from the Centre, the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) on a plea challenging the new system. The case has put a spotlight on a question that could affect the way India's biggest digital payment system works: if the government is not collecting the money, what is the legal basis for the charge?Supreme Court Questions Legal Basis Of UPI ChargeA three-judge bench led by Chief Justice of India Surya Kant, along with Justices Joymalya Bagchi and V Mohana, heard the plea filed by advocate Anjan Datta.During the hearing, the bench sought clarity on the nature of the charge.
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