India’s Supreme Court refused to stay implementation of a 0.4% merchant discount rate on specified UPI payments above ₹2,000. Indian Express and Times of India reported the procedural decision after a hearing on 28 September. The court sought responses from the central government, Reserve Bank of India and National Payments Corporation of India. It allowed four weeks for affidavits.
The fee is scheduled to take effect on 15 October for designated person-to-merchant transactions. A Ministry of Finance statement says the charge applies to specified transactions above the threshold rather than all UPI payments. Merchants, rather than consumers, are the regulated payers under the framework. The petition, filed by advocate Anjan Datta, challenges the framework’s constitutionality and alleges insufficient public consultation and transparency.
INTERIM RELIEF WAS DENIED
The refusal leaves the implementation timetable in place while the challenge continues. It does not decide the petition’s merits or amount to judicial approval of the fee.
The Times of India reported that the court asked the Centre to explain its decision.
PAYMENT COSTS REMAIN CONTESTED
The Ministry of Finance said about 96% of person-to-merchant UPI transactions would remain free of the charge.
The next concrete milestone is the filing of the requested affidavits within four weeks, followed by the court’s next consideration of the challenge.