The Supreme Court has issued notices to the Centre, the Reserve Bank of India (RBI), the National Payments Corporation of India (NPCI) and the UPI Committee over a plea challenging Merchant Discount Rate (MDR) charges on specified UPI merchant transactions above ₹2,000.
A bench led by Chief Justice of India Surya Kant has sought responses from the respondents within 4 weeks. The proceedings concern the proposed levy on the specified category of higher-value merchant payments made through the Unified Payments Interface (UPI).
No interim stay on MDR measure
The court has not granted an interim stay on the MDR measure. Related current coverage says the court asked the Centre to explain the decision to levy charges on the specified UPI transactions.
That means the matter will proceed while the respondents prepare their replies. The notices bring the Centre, RBI, NPCI and the UPI Committee into the court process, with their responses now sought within the period set by the bench.
October 15 rollout mentioned
Related coverage also refers to an October 15 rollout and reports that the court did not stay it. The material does not provide further details about the rollout or the rate applicable to the transactions covered by the challenge.
MDR refers to the charge associated with certain merchant transactions. In this case, the plea specifically challenges MDR on specified UPI merchant payments above ₹2,000. The court's notice does not amount to a final decision on whether the challenged measure is valid.
What happens next
The Centre, RBI, NPCI and the UPI Committee are expected to respond within 4 weeks. The Supreme Court will then consider the matter further. The exact arguments in the plea, the complete rate structure and the detailed terms of the proposed charge are not yet available.
For merchants and other participants concerned about higher-value UPI transactions, the immediate development is the court's decision not to grant interim relief while seeking responses from the key institutions involved. Any final position will depend on the further proceedings and the replies filed before the court.
Conclusion
The Supreme Court has opened scrutiny of MDR on specified UPI merchant transactions above ₹2,000, while declining an interim stay and seeking responses within 4 weeks. The next step is the filing of replies by the Centre, RBI, NPCI and the UPI Committee.
Frequently Asked Questions
Q. What is the Supreme Court examining?
The court is examining a plea challenging MDR on specified UPI merchant transactions above ₹2,000.
Q. Which institutions received notices?
Notices were issued to the Centre, RBI, NPCI and the UPI Committee.
Q. How much time has the court given for responses?
The respondents have been asked to reply within 4 weeks.
Q. Did the Supreme Court grant an interim stay?
No interim stay was granted on the MDR measure.
Q. When is the rollout mentioned in related coverage?
Related coverage refers to an October 15 rollout.
Q. Has the Supreme Court delivered a final ruling?
The court has issued notices and sought responses; the material does not report a final ruling on the challenge.
