NPCI tells Supreme Court merchants cannot pass UPI MDR to customers

The National Payments Corporation of India has told the Supreme Court that merchants cannot pass Merchant Discount Rate charges to customers under the revised UPI pricing framework. In a November 3 affidavit, NPCI said MDR applies to only about 0.4 percent of person-to-merchant transactions above Rs 2,000, with smaller payments and person-to-person transfers remaining free. Violations could trigger compliance action against banks and payment providers.