सुप्रीम कोर्ट में दायर पीआईएल ने 2,000 रुपये से ऊपर UPI लेनदेन पर 0.4% MDR को चुनौती दी

PIL in SC challenges 0.4% MDR on UPI transactions above ₹2,000 in India

Petitioner questions the amended payment law, lack of gazette publication and differing treatment of UPI and RuPay debit-card transactions under the new framework

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A public interest litigation (PIL) has been filed in the Supreme Court challenging the Centre’s recently introduced framework for levying a merchant discount rate (MDR) on certain UPI transactions exceeding Rs 2,000.

The petition, filed by advocate Anjan Datta, seeks to invalidate or suspend the framework, which is scheduled to take effect on October 15. It challenges the Centre’s September 14 notification as well as the framework announced on September 15.

Under the new regime, an MDR of 0.4 per cent will apply to general person-to-merchant (P2M) UPI transactions above Rs 2,000. The charge will be capped at Rs 300 for transactions of Rs 75,000 or more.

Certain sectors classified as essential or operating on thin margins will instead attract a flat MDR of Rs 5 on transactions above Rs 2,000. These include railways, telecommunications, insurance, fuel and agricultural inputs. Capital-market transactions will carry an MDR of 0.02 per cent, subject to a ceiling of Rs 300.

The plea challenges the constitutional validity of the amended Section 10A of the Payment and Settlement Systems Act, 2007.

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According to the petitioner, the provision confers excessive and unguided discretion on the executive to determine which electronic payment systems would qualify for protection from charges.

It has also been alleged that the operative instrument governing the levy has not been published in the Official Gazette, with the petitioner questioning whether a press release can form the basis for imposing the charges.

The petition further draws a comparison between UPI payments and RuPay debit card transactions. It points out that the existing no-charge protection for RuPay debit cards does not prescribe a monetary ceiling, unlike the Rs 2,000 threshold introduced for UPI transactions.

The plea has raised concerns about the potential impact of the MDR regime on merchants, particularly businesses operating on low margins, as well as the possibility of costs being indirectly passed on to consumers.

It has sought an independent review by the Reserve Bank of India and the Union government, along with greater transparency, publication of supporting empirical data and an impact assessment.

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Topics : UPI MDR Fintech Supreme Court

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First Published: Sep 16 2026 | 10:39 PM IST

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