UPI merchant discount rate framework: rates, rollout and the Supreme Court challenge
An Indian bench declined to halt the new 0.4 percent UPI merchant discount rate on payments above Rs 2,000, but pushed the government, the Reserve Bank of India and the National Payments Corporation of India to justify the charge's legal character.
Timeline
newest first- 28 Sept 2026 Latest
Supreme Court Refuses to Stay UPI Merchant Charge, Presses Centre on Whether It Is a Tax or a Fee
An Indian bench declined to halt the new 0.4 percent UPI merchant discount rate on payments above Rs 2,000, but pushed the government, the Reserve Bank of India and the National Payments Corporation of India to justify the charge's legal character.
- 20 Sept 2026
India Sets UPI Merchant Discount Rates for Payments Above Rs 2,000 as a Supreme Court PIL Challenges the Framework
India's Ministry of Finance said on September 15 that UPI person-to-person payments stay free while specified person-to-merchant payments above Rs 2,000 attract a merchant discount rate of 0.4%, capped at Rs 300. A public interest litigation in the Supreme Court, according to news reports, challenges the framework and the amended Section 10A of the Payment and Settlement Systems Act.