UPI MDR From Oct 15: Supreme Court Questions Legal Basis Of New Fee

The Supreme Court has refused to stay the implementation of UPI Merchant Discount Rate (MDR) from October 15, but has raised key questions over the new charge. The court wants clarity on three crucial issues: who pays, who earns and what is the legal basis for imposing the MDR. The government has maintained that the MDR is a fee and not a tax, while the RBI has explained that the mechanism is similar to MDR charged on debit and credit card transactions. The court has now sought clarity on the amendment and the basis for implementing the charge, with the next hearing scheduled after four weeks. Here’s what the Supreme Court’s questions mean for the October 15 UPI MDR rollout.