The Supreme Court will review the challenge against the implementation of a Merchant Discount Rate (MDR) on certain UPI transactions exceeding INR 2,000, allegedly done without adequate safeguards and public consultation.
In a significant move concerning digital payments, the Supreme Court is set to hear a plea tomorrow challenging the Centre's decision to introduce a Merchant Discount Rate (MDR) on specified UPI transactions that exceed INR 2,000. This development marks an end to six years of free UPI payments, as from October 15, a fee of 0.4% has been implemented for merchant transactions above the stated amount.
The MDR will be capped at INR 300 for transactions of INR 75,000 and above. It is important to note that essential sectors like railways, telecom, insurance, fuel, and agricultural inputs have been exempted from this fee, with a flat charge of INR 5 per transaction being imposed instead.
Moreover, payments into mutual funds, securities, stockbrokers, and dealers will attract an MDR of 0.02%, also capped at INR 300. The petition filed by advocate Anjan Datta argues that the levy has been executed without adequate statutory safeguards, transparency, or public consultation.
The case will be heard by a bench consisting of Chief Justice of India, Justice Surya Kant, and Justices Joymalya Bagchi and V Mohana.
Source:
Akashvani News
