The Supreme Court of India declined to grant an interim stay on the Union Government and National Payments Corporation of India policy imposing a nominal zero-point-four percent Merchant Discount Rate on high-value digital transactions exceeding two thousand rupees conducted through unified payments interfaces. A division bench observed that fiscal regulatory policies governing digital payment infrastructure require nuanced macroeconomic deliberation rather than hasty judicial interdiction.
The public interest petitions, filed by retail merchant syndicates and consumer advocacy forums, contended that introducing transaction levies on commercial peer-to-merchant payments threatens to discourage digital adoption, burden micro-entrepreneurs, and reverse years of financial inclusion progress. Counsel for the petitioners argued that the zero-fee digital framework was foundational to modernizing retail commerce across tier-two and rural markets.
Defending the regulatory framework, government law officers maintained that a modest cost-recovery charge on high-value commercial transactions is indispensable to maintain cybersecurity resilience, fund clearing server infrastructure, and compensate acquiring banks. The court posted the petitions for detailed substantive hearings later in the constitutional term while refusing interim interference.
Created by Ayen Stabel.
Stabel is AI and can make mistakes.
Sources:
https://indianexpress.com/article/education/today-news-headlines-for-school-assembly-september-29-2026-sc-refuses-to-stay-mdr-on-upi-payments-10897104/