The Supreme Court refused to stay the proposed MDR on specified UPI merchant transactions above Rs 2,000 from October 15. It sought responses from the Centre, RBI and NPCI within four weeks on a petition challenging the levy
Mobile phone retailers across India plan to observe October 2 as "No UPI Day" to protest the 0.4 per cent merchant discount rate on eligible UPI transactions. AIMRA said the charge could significantly increase costs for small retailers nationwide
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
Finance Minister Nirmala Sitharaman said the proposed 0.4 per cent MDR on select UPI transactions above Rs 2,000 is not a tax or surcharge, with collections staying within the payment ecosystem and consumers not bearing the charge
India’s credit card spending growth slowed in August, with HSBC and Jefferies flagging muted momentum and profitability pressures. Card additions rose 10.3 per cent year-on-year, while UPI continued to dominate digital payments amid changes to the merchant discount rate framework
The All India Mobile Retailers Association has urged the Finance Ministry to exempt small and medium mobile retailers from any proposed UPI MDR or transaction charges. AIMRA said a 0.4 per cent fee could further squeeze already thin margins
Petroleum dealers have sought exemption from the Rs 5 merchant discount rate on UPI transactions above Rs 2,000 for fuel purchases, saying the additional cost could pressure their margins. The AIPDA discussed the issue with senior Petroleum Ministry officials
Opposition parties have criticised the new UPI merchant discount rate framework, alleging it was introduced under US pressure. Congress, RJD, TMC and CPI leaders questioned the move, while the government maintained that MDR charges would not be imposed on consumers
The Finance Ministry rejected claims that changes in UPI merchant discount rates were driven by foreign influence, saying India's digital payment policies are independently decided. It said UPI remains free for customers, while certain high-value merchant transactions attract charges
UPI payments to merchants above Rs 2,000 will attract a 0.4 per cent MDR from October 15, with 18 per cent GST on the fee. Tax experts said eligible GST-registered merchants can claim input tax credit, reducing the overall burden
Zerodha CEO Nithin Kamath backed the introduction of MDR on P2M UPI payments, saying it could increase competition in the ecosystem. However, he flagged concerns for brokers, who could incur charges on repeated client fund transfers without generating corresponding revenue.
The BJP defended the new 0.4 per cent MDR on select UPI merchant transactions above Rs 2,000, while NCP(SP) criticised the move. The reactions followed NPCI’s announcement of the framework, which keeps person-to-person payments free.
