The Centre said person-to-merchant (P2M) transactions of up to ₹2,000 would be exempt from Merchant Discount Rate (MDR). The Centre told the Supreme Court that merchants were never promised indefinite zero-MDR on UPI transactions, defending proposed charges for transactions above ₹2,000. NPCI told the Supreme Court that merchants cannot pass on MDR charges to customers, defending the revised UPI framework that imposes fees on select merchant transactions above Rs 2,000.