{"id":29714,"date":"2026-09-28T07:57:00","date_gmt":"2026-09-28T07:57:00","guid":{"rendered":"https:\/\/koshalsambada.in\/?p=29714"},"modified":"2026-09-28T07:57:00","modified_gmt":"2026-09-28T07:57:00","slug":"sc-refuses-interim-stay-on-mdr-for-upi-transactions-asks-centre-to-explain-decision","status":"publish","type":"post","link":"https:\/\/koshalsambada.in\/?p=29714","title":{"rendered":"SC refuses interim stay on MDR for UPI transactions, asks Centre to explain decision"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div>\n<div class=\"e9jwa\">\n<div class=\"vdo_embedd\">\n<div class=\"GfdvZ\">\n<section class=\"_bIDB  clearfix id-r-component leadmedia undefined undefined  E9tg9 \" style=\"top:0px\">\n<div class=\"_bIDB\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">\n<div class=\"ypVvZ\">\n<div class=\"WGttI\"><img src=\"https:\/\/static.toiimg.com\/thumb\/msid-134535915,imgsize-123460,width-400,height-225,resizemode-4\/file-photo.jpg\" alt=\"SC refuses interim stay on MDR for UPI transactions, asks Centre to explain decision\" title=\"SC asks \u2018what is the service\u2019 behind new charges\" decoding=\"async\" fetchpriority=\"high\"\/><\/div>\n<\/div>\n<\/div>\n<div class=\"Ta7d_ img_cptn\"><span title=\"SC asks \u2018what is the service\u2019 behind new charges\">SC asks \u2018what is the service\u2019 behind new charges<\/span><\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n<p>NEW DELHI: The Supreme Court has issued notice to the Centre, the <a href=\"https:\/\/timesofindia.indiatimes.com\/topic\/reserve-bank-of-india\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\" target=\"_blank\" rel=\"noopener\">Reserve Bank of India<\/a> (RBI) and the National Payments Corporation of India (NPCI) on a plea challenging Gazette notifications introducing charges on commercial UPI transactions above Rs 2,000.<span class=\"id-r-component br\" data-pos=\"4\"\/>A bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana was hearing a writ petition filed by advocate Anjan Datta challenging Gazette notifications issued by the Union Ministry of Finance on September 14 and 15.<span class=\"id-r-component br\" data-pos=\"6\"\/>The court directed the Centre and other respondents to file their counter affidavits within four weeks, while observing that the issue was \u201cless legal and more technical\u201d.<span class=\"id-r-component br\" data-pos=\"10\"\/>&#8220;Is it tax or a fee? If not a fee, what is the executive basis for making this expropriation? What is the service?&#8221; Justice Bagchi said.<span class=\"id-r-component br\" data-pos=\"12\"\/>&#8220;269 permits a transfer&#8230;if it permits transfer, so cash from one assessee moves to another, then what is the character of receipt. In UPI who gets it? We are not on the [coverage]. We are on legal incidence. What is the source of legal incidence of this?&#8221; Bagchi said.<span class=\"id-r-component br\" data-pos=\"14\"\/>The court, however, declined to stay the Centre\u2019s decision to impose merchant discount rate (MDR) on specified person-to-merchant UPI transactions above Rs 2,000. The charges are set to take effect from October 15.<span class=\"id-r-component br\" data-pos=\"18\"\/>The Centre told the Supreme Court that 96 per cent of people using payment gateways would be exempt from the MDR on UPI payments above Rs 2,000.<span class=\"id-r-component br\" data-pos=\"20\"\/>The plea has been filed against the Union government, the RBI, NPCI and the UPI &amp; Services Steering Committee. The petitioner has contended that imposing charges on commercial UPI transactions could have a wider impact on the public, as businesses may pass the additional costs on to consumers.<span class=\"id-r-component br\" data-pos=\"23\"\/>The Union government has introduced a framework allowing MDR charges on specified high-value commercial UPI transactions while retaining free UPI payments for individuals and small merchants. The move follows amendments to the Payment and Settlement Systems Act, 2007, and notifications issued by the Ministry of Finance in September 2026.<span class=\"id-r-component br\" data-pos=\"25\"\/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">Mobile retailers plan &#8216;No UPI Day&#8217;<\/span><span class=\"id-r-component br\" data-pos=\"27\"\/>The Supreme Court hearing comes as mobile phone retailers across India are set to observe October 2 as \u201cNo UPI Day\u201d to protest the 0.4 per cent MDR on eligible UPI transactions, a senior official of the All India Mobile Retailers Association (AIMRA) said.<span class=\"id-r-component br\" data-pos=\"30\"\/>\u201cThe All India Mobile Retailers Association (AIMRA) has called for a &#8216;NO UPI DAY&#8217; on October 2, 2026, to highlight the concerns of mobile retailers regarding the 0.4 per cent Merchant Discount Rate (MDR) applicable to eligible merchant UPI transactions,\u201d AIMRA Vice President and President for Delhi NCR region, Tarvinder Singh, said in a statement.<span class=\"id-r-component br\" data-pos=\"32\"\/>Singh said retailers would symbolically cover their UPI QR codes with black cloth and refrain from accepting UPI payments on Gandhi Jayanti.<span class=\"id-r-component br\" data-pos=\"35\"\/>In a representation to finance minister Nirmala Sitharaman, AIMRA said the MDR would result in an immediate net monthly loss of Rs 2,000 to Rs 12,000 for a small retailer processing Rs 5 lakh to Rs 30 lakh a month through UPI, substantially reducing their net income.<span class=\"id-r-component br\" data-pos=\"38\"\/>The retailers\u2019 body estimated that the 0.4 per cent MDR would impose a burden of around Rs 40 crore per month and nearly Rs 500 crore annually on small mobile retailers across India.<span class=\"id-r-component br\" data-pos=\"41\"\/>\u201cIf We Want Digital India, UPI Must Remain Zero MDR. This is not a protest against UPI or Digital India. Our concern is the additional financial burden being placed on merchants who accept digital payments. If we want Digital India to grow further, digital payments should remain affordable for the entire retail ecosystem. Our clear demand is that UPI merchant payments should continue under a Zero MDR structure,\u201d Singh said.<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/sc-refuses-interim-stay-on-mdr-for-upi-transactions-asks-centre-to-explain-decision\/articleshow\/134535885.cms\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SC asks \u2018what is the service\u2019 behind new charges NEW DELHI: The Supreme Court has issued notice to the Centre, the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) on a plea challenging Gazette notifications introducing charges on commercial UPI transactions above Rs 2,000.A bench comprising Chief Justice of India [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":29715,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-29714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-31"],"magazineBlocksPostFeaturedMedia":{"thumbnail":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/1790582223_file-photo.jpg","medium":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/1790582223_file-photo.jpg","medium_large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/1790582223_file-photo.jpg","large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/1790582223_file-photo.jpg","1536x1536":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/1790582223_file-photo.jpg","2048x2048":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/1790582223_file-photo.jpg","blogsy-small":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/1790582223_file-photo.jpg","blogsy-small-tall":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/1790582223_file-photo.jpg","blogsy-small-square":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/1790582223_file-photo.jpg","blogsy-small-masonry":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/1790582223_file-photo.jpg","blogsy-medium":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/1790582223_file-photo.jpg","blogsy-medium-masonry":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/1790582223_file-photo.jpg","blogsy-large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/1790582223_file-photo.jpg","blogsy-wide":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/1790582223_file-photo.jpg"},"magazineBlocksPostAuthor":{"name":"admin","avatar":"https:\/\/secure.gravatar.com\/avatar\/8709732a479614e7a8aa24d3eb1b239f30dc6d90c61464ed495001e7a469d856?s=96&d=mm&r=g"},"magazineBlocksPostCommentsNumber":"0","magazineBlocksPostExcerpt":"SC asks \u2018what is the service\u2019 behind new charges NEW DELHI: The Supreme Court has issued notice to the Centre, the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) on a plea challenging Gazette notifications introducing charges on commercial UPI transactions above Rs 2,000.A bench comprising Chief Justice of India [&hellip;]","magazineBlocksPostCategories":["\u0b26\u0b47\u0b36 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