The Supreme Court has declined an interim stay on the new Merchant Discount Rate (MDR) framework for UPI transactions exceeding Rs 2,000, scheduled for October 15. Hearing a PIL challenging the policy, a bench issued notices to the Centre, RBI, and NPCI, giving them four weeks to submit detailed affidavits.

The petitioner argued that introducing these charges imposes an arbitrary financial burden without adequate public consultation. However, the apex court remarked that the matter leans toward technical policy rather than purely legal questions, refusing to halt implementation at this stage.

Defending the policy, the Centre stated that 96% of UPI users and transactions will remain entirely exempt. Under the new guidelines, a 0.4% MDR applies to P2M payments above Rs 2,000, while P2P transfers and small merchants earning up to Rs 1 lakh monthly continue to enjoy zero charges. Essential sectors face capped nominal fees. The matter will resume after responses are filed.