The Supreme Court will on Monday hear a plea challenging the Centre’s decision to impose a Merchant Discount Rate (MDR) on specified UPI person-to-merchant transactions of over Rs 2,000.
Ending nearly six years of fully free UPI payments, the government has introduced a 0.4 per cent fee on transfers worth over Rs 2,000 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 Rs 300 for payments of Rs 75,000 and above.
Essential and thin-margin sectors — railways, telecom, insurance, fuel and agricultural inputs — will pay a flat MDR of Rs 5 per transaction above Rs 2,000.
Payments into mutual funds, securities and through stockbrokers and dealers will attract 0.02 per cent MDR, also capped at Rs 300.
Person-to-person (P2P) transfers — which make up 37 per cent of UPI’s transaction volume and 70 per cent of its transaction value — will continue to
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