{
  "id": 10435952,
  "title": "Supreme Court refuses to stay MDR fee on UPI: What it means for customers, changes after Oct 15",
  "url": "https://urgent.news/2026/09/28/supreme-court-refuses-to-stay-mdr-fee-on-upi-what-it-means-for",
  "topic": "world",
  "section": "World",
  "published": "2026-09-28T11:56:25.000Z",
  "source": {
    "name": "The Indian Express",
    "slug": "the-indian-express",
    "url": "https://indianexpress.com/article/india/supreme-court-refuses-to-stay-upi-mdr-fee-what-it-means-for-customers-and-business-10897717/"
  },
  "original_language": "en",
  "account": "The Supreme Court recently declined to halt the Centre's implementation of a Merchant Discount Rate (MDR) on UPI (Unified Payments Interface) person-to-merchant payments exceeding Rs 2,000. The government introduced the MDR on September 15, citing operational expenses. The new rates, applicable to merchant payments, will take effect from October 15. While the Supreme Court's bench, consisting of Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana, declined to grant a stay on the government's decision, it requested responses from the Centre and others regarding the petition challenging the MDR move. The court has directed the government, along with the Reserve Bank of India, to submit counter affidavits within four weeks.\n\nUnder the new UPI MDR rule, a 0.4% MDR will be applied on specified UPI person-to-merchant transactions surpassing Rs 2,000. The rule marks a significant shift from the previous six years of zero-MDR on UPI payments for specific transactions. Transactions up to Rs 2,000 remain free, but those above this threshold will incur the 0.4% MDR. However, the charge is capped at Rs 300 for transactions exceeding Rs 75,000.\n\nSeveral sectors, such as railways, telecommunications, insurance, fuel, and agricultural inputs, have been exempted from the MDR. These sectors, which operate under thin margins, will face a flat MDR of Rs 5 per transaction for payments exceeding Rs 2,000. Other sectors, like mutual funds, securities, stockbrokers, and dealers, will be subject to an MDR of 0.02%, with an upper limit of Rs 300 per transaction. Monthly utility bills, OTT subscriptions, monthly investments, and automated recurring payments will not attract any MDR charges.\n\nThe government has maintained that the MDR charges will not impact consumers and has advised banks to ensure that merchants do not pass MDR costs onto customers. According to the Finance Ministry, the MDR charges are intended to remain within the merchant payment ecosystem and not on customers making UPI payments. Importantly, the MDR charges do not apply to person-to-person payments, including transactions made to family members, friends, or individuals, regardless of the amount.",
  "summary": null,
  "key_points": [
    "Supreme Court declines to halt MDR fee on UPI transactions over Rs 2,000.",
    "New MDR rule takes effect from October 15, with 0.4% charge on specified transactions.",
    "Exemptions for certain sectors like railways, telecommunications, and fuel."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "The Indian Express - India",
        "title": "Supreme Court refuses to stay MDR fee on UPI: What it means for customers, changes after Oct 15",
        "url": "https://urgent.news/2026/09/28/supreme-court-refuses-to-stay-mdr-fee-on-upi-what-it-means-for-10438581",
        "published": "2026-09-28T11:56:25.000Z"
      },
      {
        "outlet": "Daily Post Nigeria",
        "title": "Supreme Court judgment: Why Wike’s ally, Chinda no longer qualified to run – Rivers ADC",
        "url": "https://urgent.news/2026/09/28/supreme-court-judgment-why-wikes-ally-chinda-no-longer-qualified-to",
        "published": "2026-09-28T13:10:41.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}