CNN Central News & Network-ITDC India Epress/ITDC News Bhopal: New Delhi. The Supreme Court will today hear an important matter concerning the proposed charges on UPI payments. A public interest litigation filed by advocate Anjan Dutta has challenged the central government’s decision providing for a 0.4 per cent merchant discount rate, or MDR, on certain person-to-merchant UPI payments above Rs 2,000. The matter will be heard by a bench headed by Chief Justice Surya Kant.
The new system is scheduled to come into effect from October 15, 2026. No charge will be levied on regular person-to-person UPI transactions. Merchant payments up to Rs 2,000 will also remain outside the charge. A 0.4 per cent MDR has been proposed on general merchant payments above Rs 2,000, while for payments of Rs 75,000 or more, the maximum limit has been fixed at Rs 300.
The petition has raised questions over the legal validity, transparency and adequate legal safeguards of the proposed fee system. The petitioner has said adequate public consultation and a clear basis were required before implementing the new arrangement. Under the government’s new system, everyday small payments and person-to-person transactions have been kept outside the charge. The Supreme Court hearing will now indicate what view the court takes on the proposed MDR arrangement.
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