India, Sept. 28 -- The Supreme Court today refused to stay the Centre's decision to introduce merchant discount rate (MDR) charges on select UPI payments above Rs.2,000, while seeking responses on the legal basis and nature of the levy.

According to a Bar and Bench report, the SC bench, comprising CJI Surya Kant and Justices Joymalya Bagchi and V Mohana, was hearing a PIL filed by advocate Anjan Datta challenging the framework, which is scheduled to take effect from October 15.

The SC directed the Centre, the RBI, and the NPCI to file their responses within four weeks.

The petition argued that the levy could squeeze merchants' working capital, encourage traders to refuse UPI payments or split transactions to avoid charges, and eventual...