Supreme Court Allows UPI MDR Fee Rollout to Proceed

India's Supreme Court refused to block a new rule letting banks and payment platforms charge a 0.4% merchant fee (MDR) on most UPI transactions above ₹2,000, starting October 15. Fees cap at ₹300 per transaction, and smaller merchants—those with under ₹1 lakh a month from UPI QR codes—are exempt. Some industries like telecom and fuel will see flat or lower fees. The Court is still reviewing the policy and asked the government to explain its rationale for the ₹2,000 cutoff.

• No Supreme Court stay on new UPI MDR rules
• 0.4% fee starts for merchant payments above ₹2,000
• Fee capped at ₹300 per transaction
• Small merchants and some sectors get exemptions
• Court seeks government explanation for ₹2,000 threshold