Supreme Court Declines Stay on UPI MDR

The Supreme Court has declined to grant an immediate interim stay on the Centre’s new Merchant Discount Rate (MDR) framework for specified UPI merchant transactions. The court is hearing a legal challenge to the policy, under which MDR will apply to certain person-to-merchant UPI payments above Rs 2,000. The bench has issued notices seeking responses from the concerned authorities on the new charging framework.

The court has sought a detailed explanation on the basis and mechanism of the charges as part of its examination of the policy. The new framework is scheduled to take effect from October 15, while the Supreme Court’s refusal to grant interim relief means the policy has not been stayed at this stage. The legal challenge and the government’s response will now be examined further by the court.