The Supreme Court on Monday declined to grant an interim stay on the proposed Merchant Discount Rate (MDR) for specified UPI merchant transactions above ₹2,000. The court issued notices to the Centre, Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI) on a petition challenging the new framework.
Under the new framework, a 0.4% MDR is set to apply to specified person-to-merchant UPI transactions above ₹2,000 from October 15, 2026. The government has clarified that person-to-person UPI payments will remain free, while around 96% of merchant transactions are expected to remain unaffected.
The Supreme Court is examining the legal basis and nature of the proposed charges as the challenge proceeds.
