Startup And Fundraising 29 September 2026
Supreme Court Questions UPI MDR Policy
India’s Supreme Court has asked the government to clarify the nature of the Merchant Discount Rate (MDR) on Unified Payments Interface transactions, emphasizing that the court’s refusal to stay the issue does not constitute approval of its legality. The court seeks to determine whether the MDR functions as a tax, a fee, or another form of levy, highlighting concerns over transparency and the financial impact on users and businesses.
Supreme Court has asked the government to clarify the Merchant Discount Rate (MDR) on UPI transactions.
- Court refused to stay the matter, but did not approve MDR legality.
- Officials must explain whether MDR is a tax, a fee, or another levy.
- Issue raises concerns about transparency and cost impact on users and merchants.
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