Supreme Court Challenges Governments Fee on UPI Payments Over ₹2000

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Himanshu Tiwari

Supreme Court Challenges Governments Fee on UPI Payments Over ₹2000

New Delhi, September 16 (Daily Kiran) : A petition has been submitted to the Supreme Court challenging the central government’s decision to impose fees on commercial UPI payments exceeding ₹2000. The petition seeks to annul the government’s notification and the recently introduced MDR framework.

Filed by lawyer Anjan Dutta, the petition argues that the government made this decision without adequate legal justification and without considering the broader public interest. It labels the notification issued on December 14 and the MDR framework that took effect on September 15 as unconstitutional.

The petition emphasizes that UPI was developed to promote digital payments in the country and provide low-cost payment options for citizens. Imposing additional fees contradicts the government’s policy to encourage digital transactions.

The debate over the 0.4% fee on some merchant UPI transactions has intensified among political parties. BJP MP Anurag Thakur defended the decision, stating that India’s digital payment system has become a global model. He highlighted the accessibility of digital payments for small shopkeepers, street vendors, and the general public as a significant achievement for India.

Thakur remarked, “The digital transaction model of India is discussed worldwide. Leaders from major countries visit to observe how even a tea seller or a small vendor easily accepts digital payments.” He accused the Congress party of misleading the public on this issue and urged for a serious examination of the entire report. He reassured that transactions up to ₹2000 incur no fees, and most transactions over ₹2000 will also remain exempt from charges.

In contrast, the opposition, including Congress, has criticized the government’s decision, calling for its withdrawal, arguing that it will adversely affect ordinary citizens.

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