NEW The Times Of India
Tue 29 Sep 2026 06:47:10 AM
No stay on MDR but SC asks under what law was it imposed
SUMMARY
**Supreme Court Questions Legal Basis of MDR Charges**
The Supreme Court questioned under what law the Merchant Discount Rate (MDR) was imposed on digital transactions, while clarifying there's no stay on MDR. MDR is a fee merchants pay to banks for processing card/digital payments. The court sought the government's response, raising concerns about the legal authority behind imposing such charges on digital transactions, especially when the government promotes a cashless economy. This scrutiny could impact banks, fintech firms, and merchants nationwide.
The Supreme Court questioned under what law the Merchant Discount Rate (MDR) was imposed on digital transactions, while clarifying there's no stay on MDR. MDR is a fee merchants pay to banks for processing card/digital payments. The court sought the government's response, raising concerns about the legal authority behind imposing such charges on digital transactions, especially when the government promotes a cashless economy. This scrutiny could impact banks, fintech firms, and merchants nationwide.
Relevant For:
Prelims + Mains
GS - III
Economy
Focus Area
UPI
MDR
Digital Payments
NPCI
RBI
Payment Systems
Financial Inclusion
Banking Regulation
Merchant Payments
Digital Economy
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