NPCI Defends UPI Merchant Charges in Supreme Court Filing

Business Standard · business

The National Payments Corporation of India (NPCI) has defended its decision to impose Merchant Discount Rate (MDR) on select UPI transactions in a Supreme Court affidavit. The NPCI argues these charges are necessary to sustain the digital payment infrastructure. The affidavit responds to a petition challenging the government's decision to allow merchant fees on transactions exceeding ₹2,000. While person-to-person UPI transfers remain free, specific merchant transactions above ₹2,000 will incur a 0.4% MDR, capped at ₹300.