The Supreme Court has declined to stay the October 15 rollout of the new Merchant Discount Rate (MDR) framework for specified UPI merchant transactions above Rs 2,000. The court has issued notices to the Centre, Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI) on a plea challenging the framework. A bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana directed the Centre, RBI and NPCI to file their responses within four weeks. The court also sought an explanation on the basis and legal character of the charge, according to Bar & Bench. The plea, filed by advocate Anjan Datta, challenges the Centre's September 14 notification and the MDR framework announced on September 15. It questions the legal basis for imposing MDR on select UPI transactions and the manner in which the framework was introduced. Under the new framework, a 0.4% MDR will apply to specified person-to-merchant (P2M) UPI transactions above Rs 2,000, capped at Rs 300 for transactions of Rs 75,000 and above. UPI payments to merchants of up to Rs 2,000 and person-to-person (P2P) transactions will continue to remain free. Certain sectors, including railways, telecom, insurance, fuel and agricultural inputs, will attract a flat MDR of Rs 5 on transactions above Rs 2,000. Transactions involving mutual funds, securities, stockbrokers and dealers will carry an MDR of 0.02%, capped at Rs 300. According to the Finance Ministry, the new framework will aff…

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