The Supreme Court refused an immediate stay on charges for select merchant payments through UPI. However, the court issued notices to the Centre, UPI Steering Committee, NPCI and other concerned parties.
The bench headed by CJI Justice Suryakant will hear the matter. Moreover, the court has asked all parties to submit responses within four weeks.
Court Seeks Response On New UPI Payment Charges
The petition challenges the validity of new merchant charges on selected UPI payments above ₹2,000. Meanwhile, the Supreme Court has not stopped the upcoming charging system.
The National Payments Corporation of India decided to introduce MDR charges from October 15. Under this system, payments above ₹2,000 will attract a 0.4% charge.
Additionally, payments worth ₹75,000 or more will have a maximum charge limit of ₹300. However, regular person-to-person UPI payments will continue without charges.
The government has stated that around 96% of merchant transactions will remain unaffected. Therefore, most traders may not face changes under this arrangement.
New Rules Include Small Merchant Relief
The updated system provides exemptions for small merchants using UPI QR payments. Traders receiving up to ₹1 lakh monthly through UPI QR will not pay charges.
Furthermore, certain sectors will follow a fixed charge model. Railway, telecom, insurance, fuel and agricultural input sectors will face a ₹5 charge on payments above ₹2,000.
The Supreme Court received a public interest petition challenging this decision. The petition claims authorities introduced charges without enough legal protection, transparency and public consultation.
Petition Challenges Earlier Zero-Charge System Change
The plea also challenges the Centre’s decision to modify the zero-charge arrangement. This system had operated since January 2020.
According to the petition, authorities changed the existing structure without proper safeguards. However, the Supreme Court has currently refused an immediate intervention.
Therefore, the new UPI merchant payment charge system will continue from October 15. The concerned parties must now provide their responses before further proceedings.
