The Supreme Court on Monday declined to grant an interim stay on the new Merchant Discount Rate framework for specified UPI person-to-merchant transactions above Rs 2,000. The bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V. Mohana issued notices to the Union government, the RBI, the NPCI and the UPI & Services Steering Committee instead,

Replies are due within four weeks.

The PIL, filed by advocate Anjan Datta challenges the Centre's Gazette notification of 14 September 2026 and the MDR framework announced on 15 September 2026.

Under the framework, effective 15 October 2026, general person-to-merchant UPI transactions above Rs 2,000 attract MDR of 0.4 per cent, capped at Rs 300 for payments of Rs 75,000 and above. Transactions up to Rs 2,000 stay free, as do all person-to-person transfers.

A flat Rs 5 per transaction applies above Rs 2,000 in railways, telecom, insurance and fuel. Stock market and mutual fund payments get 0.02 per cent capped at Rs 300, and small merchants receiving up to Rs 1 lakh a month via UPI QR are exempt. Additional Solicitor General N. Venkataraman told the court about 96 per cent of transactions would not face the charge.