Supreme Court to Hear Plea Challenging MDR on UPI – 28 September 2026

What happened

The Supreme Court of India is scheduled to hear a plea challenging the central government’s new Merchant Discount Rate (MDR) framework linked to UPI transactions. Reporting around 28 September 2026 highlights concern over charges on higher-value UPI payments.

UPI (Unified Payments Interface) is operated by the National Payments Corporation of India (NPCI) under the broader oversight of the payments ecosystem guided by the RBI. Zero-MDR on many UPI person-to-merchant flows has been a signature feature of India’s digital public infrastructure push.

Exam angles

• MDR = fee paid by merchants to banks / payment providers for accepting digital payments
• NPCI: not-for-profit company promoted by banks; HQ Mumbai
• UPI vs NEFT / RTGS / IMPS — real-time, mobile-first, interoperable
• Article 32 / writ jurisdiction context when policies are challenged in the Supreme Court

Aspirants should track the Court’s directions and any government clarification, without treating media speculation as settled law.

Aspirants should follow only the Court’s eventual order or government gazette / NPCI circular for the final MDR rules. Until then, treat news reports as agenda-setting context for GS and banking awareness, not as a finished fee schedule for merchants.

Practice MCQs

1. UPI in India is primarily operated by:

   (A) SEBI
   (B) NPCI
   (C) NABARD
   (D) IRDAI

   Answer: (B) – National Payments Corporation of India.

2. MDR in digital payments generally means:

   (A) Minimum Deposit Rate
   (B) Merchant Discount Rate
   (C) Monthly Digital Return
   (D) Multi-Device Registration

   Answer: (B) – Merchant Discount Rate.

3. The Supreme Court of India sits in:

   (A) Mumbai
   (B) Kolkata
   (C) New Delhi
   (D) Bengaluru

   Answer: (C) – Seat of the Supreme Court is New Delhi.

Source: The Hindu business report on SC listing for MDR-on-UPI plea, September 2026.