started · updated
Supreme Court declines stay on new UPI merchant fees
The Supreme Court of India has declined to grant an interim stay on the implementation of a new Merchant Discount Rate (MDR) for certain Unified Payments Interface (UPI) transactions. The new framework, scheduled to take effect on October 15, 2026, will impose a 0.4% fee on specific person-to-merchant (P2M) transactions exceeding Rs 2,000. For transactions of Rs 75,000 or more, the fee will be capped at Rs 300.
Certain essential and low-margin sectors, including railways, telecom, insurance, fuel, and agricultural inputs, will be subject to a flat fee of Rs 5 for transactions above Rs 2,000. Additionally, transactions related to mutual funds, securities, and stockbrokers will incur a 0.02% MDR, also capped at Rs 300. Person-to-person (P2P) transfers and merchant payments up to Rs 2,000 will remain free of charge.
A petition filed by advocate Anjan Datta challenges the legal validity of the September 14 notification and the subsequent MDR framework. The plea questions the constitutional validity of the amended Section 10A of the Payment and Settlement Systems Act, 2007, alleging a lack of transparency and public consultation. The Supreme Court has issued notices to the central government, the Reserve Bank of India (RBI), and the National Payments Corporation of India (NPCI), directing them to file responses within four weeks.
Entities
Anjan Datta · National Payments Corporation of India · Reserve Bank of India · Supreme Court of India · Surya Kant · Unified Payments Interface
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 22 SOURCES] The new UPI fee structure is scheduled to come into effect on October 15, 2026. sanmarg.in · theobserverpost.com · www.aajtak.in · sahilonline.org · www.nayaindia.com · +17 more
- [● 19 SOURCES] For UPI transactions of Rs 75,000 or more, the Merchant Discount Rate (MDR) fee will be capped at Rs 300. sanmarg.in · theobserverpost.com · sahilonline.org · www.nayaindia.com · www.siasat.com · +14 more
- [● 19 SOURCES] Sectors such as railways, telecom, insurance, fuel, and agricultural inputs will be charged a flat fee of Rs 5 for transactions exceeding Rs 2,000. sanmarg.in · theobserverpost.com · sahilonline.org · www.orissapost.com · www.siasat.com · +14 more
- [● 22 SOURCES] Person-to-person (P2P) UPI transfers will remain free of charge regardless of the transaction amount. sanmarg.in · theobserverpost.com · www.aajtak.in · sahilonline.org · www.nayaindia.com · +17 more
- [● 12 SOURCES] The Supreme Court refused to grant an interim stay on the implementation of the new fee structure. hindi.latestly.com · www.orissapost.com · sanmarg.in · english.mathrubhumi.com · odishabytes.com · +7 more
- [● 13 SOURCES] The Supreme Court issued notices to the central government, the Reserve Bank of India (RBI), and the National Payments Corporation of India (NPCI) regarding the petition. hindi.latestly.com · english.mathrubhumi.com · www.orissapost.com · odishabytes.com · theshillongtimes.com · +8 more
- [● 22 SOURCES] A 0.4% Merchant Discount Rate (MDR) will be applied to certain person-to-merchant UPI transactions exceeding Rs 2,000. sanmarg.in · theobserverpost.com · www.aajtak.in · sahilonline.org · www.nayaindia.com · +17 more
- [● 8 SOURCES] The legal challenge includes questioning the constitutional validity of the amended Section 10A of the Payment and Settlement Systems Act, 2007. sanmarg.in · theobserverpost.com · hindi.latestly.com · www.nayaindia.com · thecsrjournal.in · +3 more