On 27 September 2026 the Supreme Court cause list put a public-interest case on UPI merchant fees up for hearing on Monday, 28 September. The bench named in reports is Chief Justice Surya Kant with Justices Joymalya Bagchi and V. Mohana. Nothing in that listing cancels the fee. It only means a judge will hear the challenge.
The operational rule, unless the court stays it, is still the one set for 15 October 2026. Read the earlier breakdown: what the 0.4% MDR covers.
What the plea attacks
Advocate Anjan Datta’s PIL challenges the Centre’s 14 September notification and the MDR framework announced on 15 September. It asks the court to quash or suspend the charge on person-to-merchant UPI above ₹2,000. In the alternative it asks for a fresh look after consultation, published data, and an impact study, plus safeguards for micro and small enterprises. The Centre and the Reserve Bank of India are among the respondents.
The petition also questions amended Section 10A of the Payment and Settlement Systems Act, 2007, arguing it leaves too much room for the executive to decide which electronic payments stay free. It asks that any future split consider turnover, MSME status, margins, and geography, instead of a single cliff at ₹2,000.
What the fee still is
- 0.4% on eligible person-to-merchant UPI above ₹2,000, from 15 October.
- ₹300 cap once the payment is ₹75,000 or more.
- Person-to-person transfers stay free. Payments of ₹2,000 or less stay free.
- Railways, telecom, insurance, fuel, and named utilities above ₹2,000 are on a flat ₹5, not 0.4%.
- A 15 September government statement, as reported by Mint, said MDR sits inside the merchant acquiring chain and should not be added on the customer’s bill.
What a shop should not do on Monday
- Do not print “no UPI above ₹2,000” because a case is listed. A listing is not a stay.
- Do not add a surcharge “until the court decides.” Official design says the merchant bears MDR.
- Do not rebuild prices off a rumour of 0.4% on every scan. Most kirana tickets are under the line or inside the small-merchant exemption.
- Do split the last 90 days of UPI into ≤₹2,000 and above. That slice is the only number that matters if 15 October arrives unchanged.
A worked example that still holds
An electronics counter with a ₹8,500 average UPI ticket pays 0.4% × 8,500 = ₹34 on that bill, if the payment is in the charged bucket. One hundred such bills are ₹3,400. That is real margin, and it is still below typical card MDR. Put the exposed slice in Wiserlytics after you upload settlements, so you see rupees and not a WhatsApp percentage.
FAQ
Will GPay or PhonePe charge me to send money to family on 28 September?
Not because of this MDR. Person-to-person UPI is outside the fee. The hearing does not create a new payer charge by itself.
Should I wait to talk to my bank?
Ask how MDR will show on the settlement file if 15 October stands. You can ask that before the hearing. You should not change the sticker price because of the hearing alone.
This is informational analysis, not legal advice. Verify NPCI, RBI, and the court order — not screenshots. Wiserdusk Blog.