Supreme Court Seeks Centre's Affidavit on MDR Charges for UPI Payments Above ₹2,000

The Supreme Court sought an affidavit from the Union government explaining the legal and factual basis for proposed merchant charges on qualifying UPI transactions above ₹2,000.

What happened

The Supreme Court sought an affidavit from the Union government explaining the legal and factual basis for proposed merchant charges on qualifying UPI transactions above ₹2,000. The Bench refused an interim stay, noting that the framework is scheduled to operate from October 15. The Centre said person-to-person transfers and most merchant transactions would remain unaffected and described the levy as a settlement charge rather than a tax or government fee. The Court questioned the source and legal incidence of the charge and issued notice to the Centre, RBI and NPCI. The challenge will continue after the government places its justification on affidavit.

Legal significance

The legal effect is confined to the present ruling or procedural development. Allegations and submissions are not treated as established facts.

What follows

The matter proceeds according to the operative judicial or statutory process described above.

Source: Original report