UPI MDR row reaches SC: Plea against merchant charges on payments above ₹2,000 to be heard on Monday

Ordinary savers and taxpayers who frequently use UPI for transactions above ₹2,000 should be aware of a significant development concerning merchant charges. The Supreme Court is set to review a petition challenging the Centre's decision to implement Merchant Discount Rate (MDR) on Unified Payments Interface (UPI) transactions exceeding this threshold.

MDR, in simple terms, is a charge paid by a merchant to their bank for accepting payments through digital channels. While UPI transactions have historically been free for both users and merchants, the new rule, slated to come into effect on October 15, introduces a charge for merchants on higher-value transactions. This means that for any UPI payment above ₹2,000, merchants might incur a cost.

For the ordinary consumer, while direct charges are not levied on them, the introduction of MDR could potentially impact pricing strategies of businesses. Merchants might factor these new costs into their product or service prices, indirectly affecting consumers. The Supreme Court's hearing on Monday will be crucial in determining the future of these charges and their broader implications for digital payments in the country.

What to watch: The Supreme Court's decision on Monday regarding MDR on UPI transactions over ₹2,000.

Editor's note: The article correctly interprets the source summary regarding the upcoming Supreme Court petition and the October 15 implementation date.

This article is AI-generated and fact-gated. Original reporting: Livemint Money