Supreme Court questions govt on UPI merchant discount rate, seeks clarity on 'expropriation' claim

The Supreme Court has questioned the government on its stance regarding the UPI merchant discount rate, asking what constitutes the disputed charge if it is neither a tax nor a fee. The court issued notices to the Union of India, the Reserve Bank of India, and the National Payments Corporation of India seeking their response.

The apex court declined repeated pleas by the petitioner for an interim stay on the matter. The case centres on whether imposing a merchant discount rate on UPI transactions amounts to an unlawful expropriation.