The PIL was filed by advocate Anjan Datta challenging the Centre’s decision to impose MDR on specified high-value UPI merchant transactions.
Under the new framework, a 0.4 per cent MDR will apply to eligible person-to-merchant UPI payments above Rs 2,000 from October 15. The charge will be capped at Rs 300 for transactions of Rs 75,000 and above.
Essential and thin-margin sectors such as railways, telecom, insurance, fuel and agricultural inputs will attract a flat MDR of Rs 5 per transaction above Rs 2,000. Payments into mutual funds and securities, as well as those made through stockbrokers and dealers, will attract an MDR of 0.02 per cent, capped at Rs 300.
Person-to-person UPI transactions will continue to remain free, irrespective of the transaction value. The new MDR framework is also designed to keep everyday small-value payments outside the levy.