An advocate filed a petition in the Supreme Court on Wednesday challenging the Centre's newly notified framework allowing a 0.4% Merchant Discount Rate on specified high-value commercial UPI transactions above ₹2,000.
The petition contends that businesses could pass the additional cost on to consumers, potentially undermining the objective of keeping UPI free for ordinary users.
The finance ministry clarified that all person-to-person transfers and merchant payments up to ₹2,000 will remain completely free, with small merchants receiving up to ₹1 lakh monthly exempt from MDR.