The Supreme Court just refused to pause the government’s new UPI fee —

@aspirantai_official

#RBI#DigitalPayments

The Supreme Court just refused to pause the government’s new UPI fee — and that’s big news for millions who use UPI daily.

Here’s why it matters: A 0.4% Merchant Discount Rate (MDR) will now apply to P2M UPI payments above ₹2,000. Sounds technical? It’s not. It means if you pay ₹5,000 at a store via UPI, the merchant may have to pay ₹20 as a processing fee; but the government says you, as the customer, won’t pay a penny extra. In fact, 96% of all UPI payments (under ₹2,000) stay completely free. The court didn’t block it; but it’s asking the Centre, RBI, and NPCI to explain why this fee is needed. Could this be the start of UPI not being 100% free? Or is it a fair cost to sustain India’s digital payment engine? Either way, your UPI wallet might not feel it; but your favourite kirana store or salon just might. The next 4 weeks could tell us a lot.