World · India Bureau
Supreme Court to Examine UPI Transaction Charges Imposed by Finance Ministry
A legal challenge has been filed in India's Supreme Court against the Finance Ministry's September 14 notification that introduced a 0.4% charge on UPI payments exceeding Rs 2,000. The petition raises questions about the implementation and impact of the newly imposed merchant discount rate on digital transactions.
LSN India ·
The Supreme Court is set to examine the constitutionality of a Finance Ministry directive that introduced charges on Unified Payments Interface transactions above Rs 2,000. Petitioner Anjan Datta has challenged the September 14 notification, which mandates a 0.4% merchant discount rate on such payments, arguing the measure warrants judicial review.
The notification represents a significant shift in India's digital payment landscape, where UPI transactions have traditionally been processed without such levies. The 0.4% charge applies specifically to payments exceeding the Rs 2,000 threshold, potentially affecting millions of daily transactions across the country.
The petition contends that the imposition raises concerns regarding accessibility and affordability of digital payment mechanisms for the Indian public. Advocates argue that such charges could deter adoption of cashless payment systems, particularly among cost-conscious consumers and small traders who rely on UPI for daily transactions.
The Supreme Court's examination of this matter comes amid broader discussions about balancing digital infrastructure sustainability with public accessibility. The Finance Ministry has not yet publicly detailed the rationale behind the specific charge structure or threshold amount selected for implementation.