Supreme Court declines interim stay on UPI MDR levy, asks Centre to explain its legal basis; next hearing November 2

On September 28, a Supreme Court bench of CJI Surya Kant and Justices Joymalya Bagchi and V Mohana refused to grant an interim stay on the proposed 0.4% merchant discount rate for UPI person-to-merchant transactions above Rs 2,000, but asked the Centre to explain the charge's legal character on affidavit. The bench pointedly asked whether the levy was a tax or a fee, and if neither, what the executive basis was for the charge. Additional Solicitor General N Venkataraman told the court it was neither a tax nor a fee but a settlement fee among payment-system participants, with the government taking nothing from the collections. The PIL by advocate Anjan Datta challenges the Finance Ministry's September 14 notification and the amended Section 10A of the Payment and Settlement Systems Act, 2007; the Centre, RBI and NPCI must file counter-affidavits within four weeks, with the next hearing on November 2. Sources: Bar & Bench, Indian Express (Bar & Bench, Indian Express)

• On September 28, a Supreme Court bench of CJI Surya Kant and Justices Joymalya Bagchi and V Mohana refused to grant an interim stay on the proposed 0.4% merchant discount rate for UPI person-to-merchant transactions abov
• The bench pointedly asked whether the levy was a tax or a fee, and if neither, what the executive basis was for the charge.
• Additional Solicitor General N Venkataraman told the court it was neither a tax nor a fee but a settlement fee among payment-system participants, with the government taking nothing from the collections.