CAIT welcomed the Centre's decision to defer the proposed MDR on select UPI transactions, saying it will protect traders and MSMEs from additional costs, encourage digital payment adoption, and support business growth during the festive and wedding season.
The Supreme Court will on Monday hear a PIL challenging the Centre's decision to impose a 0.4 per cent MDR on specified UPI merchant transactions above Rs 2,000. The petitioner has questioned the framework's legality, transparency and constitutional validity
The Finance Ministry has clarified that UPI payments will remain free for consumers, with any future merchant discount rate (MDR) applicable only to select high-value merchant transactions at nominal rates.
