India, Sept. 28 -- The Supreme Court will on Monday hear a plea challenging the Centre's decision to impose a Merchant Discount Rate (MDR) on specified UPI person-to-merchant transactions of over Rs 2,000.

Ending nearly six years of fully free UPI payments, the government has introduced a 0.4 per cent fee on transfers worth over Rs 2,000 made to merchants through the UPI platform from October 15, while explicitly ring-fencing everyday person-to-person transactions and small payments from any charge.

The MDR will be capped at Rs 300 for payments of Rs 75,000 and above.

Essential and thin-margin sectors - railways, telecom, insurance, fuel and agricultural inputs - will pay a flat MDR of Rs 5 per transaction above Rs 2,000.

Payments int...