Supreme Court declines to stay Merchant Discount Rate on UPI payments above ₹2,000
28 September 2026
The Supreme Court refused to stay the levy of Merchant Discount Rate on person-to-merchant UPI transactions above ₹2,000.
The charge is set to take effect from 15 October 2026.
The Court observed that the issue is less legal and more technical.
It directed the Centre and the other respondents to file counter-affidavits within four weeks.
Merchant Discount Rate is the fee a merchant pays to the payment service provider on a digital transaction.
Transaction threshold:
₹2,000
Effective from:
15 October 2026
Time given for counter-affidavits:
Four weeks
Why it matters for exams: MDR on UPI is a live banking and digital-payments question and the threshold and effective date are examinable facts.
Kerala PSCUPSCBank