# Supreme Court seeks Centre’s affidavit on UPI MDR charges, refuses stay

2026-09-28T08:11:31+00:00 | Governance | Indian Opinion Desk

Corroboration: 5 independent outlets

The Supreme Court on Monday refused to stay the Centre's decision to levy a 0.4% Merchant Discount Rate (MDR) on specified UPI person-to-merchant transactions above Rs 2,000, but sought an affidavit from the government explaining the basis for the charge. The court issued notice to the Centre, the RBI and the NPCI, and directed counter affidavits within four weeks. Hearing a PIL by advocate Anjan Datta, a bench headed by Chief Justice Surya Kant said the issue was 'less legal and more technical'. Justice Joymalya Bagchi asked whether the MDR was a tax or a fee, and questioned the 'source of legal incidence' for what he called an 'expropriation'. The government clarified that the charge applies from October 15 and that 96% of UPI users are exempt. Mobile phone retailers have called a 'No UPI Day' on October 2 to protest the MDR.

## Indian Opinion Analysis

All five sources report the same core facts: the Supreme Court refused an interim stay, sought an affidavit from the Centre, and heard a petition challenging the 0.4% MDR on UPI P2M transactions above Rs 2,000. The livelaw.in and timesnownews.com accounts are the most detailed on the court's technical queries and the government's argument that 96% of transactions are exempt and that the charge is a settlement fee, not a tax. Times of India adds the mobile retailers' 'No UPI Day' protest call, a development absent from the others. Every source treats the government's explanation neutrally, with no pro- or critical framing on the MDR itself. The coverage is uniformly straight reporting, the key implication for readers is that the charge takes effect on October 15 unless the court's next hearing, after four weeks, stays it.

## Coverage

- livelaw.in (neutral report) <https://www.livelaw.in/top-stories/supreme-court-asks-centre-to-explain-decision-to-levy-charges-on-upi-transactions-refuses-stay-552055>
  Leads with the court's questioning of the charge's legal basis, details the ASG's defence neutrally
- thehindu.com (neutral report) <https://www.thehindu.com/business/Economy/if-neither-tax-nor-fee-what-is-this-expropriation-supreme-court-asks-govt-on-upi-mdr-charges/article71518779.ece>
  Leads with the court's 'expropriation' query, focuses on petition's constitutional challenge
- timesnownews.com (neutral report) <https://www.timesnownews.com/business-economy/industry/upi-charges-row-sc-refuses-stay-on-0-4-mdr-above-rs-2000-seeks-centres-affidavit-article-156239576>
  Leads with refusal to stay, then gives equal space to government and RBI arguments
- hindustantimes.com (neutral report) <https://www.hindustantimes.com/india-news/supreme-court-seeks-centre-response-on-plea-challenging-mdr-on-upi-payments-of-over-rs-2000-101790579572070.html>
  Leads with refusal to stay, quotes court's technical label, includes retailers' protest imagery
- timesofindia.indiatimes.com (neutral report) <https://timesofindia.indiatimes.com/business/india-business/sc-refuses-interim-stay-on-mdr-for-upi-transactions-asks-centre-to-explain-decision/articleshow/134535885.cms>
  Leads with court's service question, uniquely adds retailers' No UPI Day protest planning

Tags: NPCI, RBI, Supreme Court of India, Union Ministry of Finance, UPI
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