Govt Considers MDR on UPI as Cash Growth Quickens to 13% While UPI Growth Slows to 18.7%

Taxation and Other Laws (Amendment) Bill 2026 Allows MDR on UPI: Subsidy Falls to ₹2,000 Cr in FY27

UPI, currently free for users, may become chargeable after the government introduced the Taxation and Other Laws (Amendment) Bill, 2026. The Bill allows the government to notify transactions that can attract Merchant Discount Rate (MDR), potentially ending the zero-MDR regime. For students, this is a key economy/polity topic linking digital payments, financial inclusion, and fiscal policy.

UPI@10 Years: 86% of Digital Transactions, Government Allows Merchant Fees Under PSS Act Amendment

UPI completes 10 years with 86% of India's digital transactions, but the zero-MDR model is ending. The government has amended the PSS Act to allow merchant fees, aiming to fund the next growth phase in rural areas and cross-border payments. Key challenge: balancing inclusion with sustainability.

President Assents to Taxation Act Amendment 2026 and Payment Systems Act Amendment; Replaces June 5 Ordinance on FPI G-Sec Tax Exemption

President Droupadi Murmu has assented to two key Acts: the Taxation and Other Laws (Amendment) Act, 2026, which replaces the June 5 ordinance granting income tax exemption to FPIs on G-Sec investments, and an amendment to the Payment and Settlement Systems Act, 2007. These reforms aim to boost foreign investment and modernize payment systems, relevant for Economy and Banking exams.

UPI Should Remain Free Public Good: ₹2,000 Cr Subsidy, ₹1,500 Cr Saved on Currency

The article argues against imposing surcharges on UPI payments, framing the digital payment system as a public good. It claims the real driver for the shift in policy is U.S. pressure, through tariffs and trade deals, to protect American financial companies (Visa, Mastercard) against India's free, state-backed UPI system.

UPI Completes 10 Years: Transaction Volume Up 13,000-Fold to 24,162 Crore

UPI completes 10 years with explosive growth: transaction volume up 13,000-fold from 1.78 crore (FY17) to 24,162 crore (FY26). Value rose 4,000-fold to ₹314 lakh crore. UPI now accounts for 49% of global real-time payments. This milestone reinforces India's digital public infrastructure and is crucial for exams on digital economy, financial inclusion, and NPCI.

BRICS Pushes for Local Currency Trade, Cross-Border Payment Linkage via UPI

Ahead of the BRICS Summit, member nations are pushing for local currency trade and linked payment systems to reduce dollar dependence. India's UPI is a key model, while the US has threatened tariffs on BRICS members. This signals a strategic shift in global financial architecture relevant for UPSC Economy and IR.

RBI Introduces 0.4% MDR on UPI Transactions Above ₹2,000 for Merchants from Oct 15, 2026

Ending nearly six years of zero-MDR UPI, the government introduces a 0.4% fee on merchant transactions above ₹2,000 from October 15, 2026. This shift aims to ensure long-term sustainability of India's digital payments ecosystem. Importantly, all person-to-person (P2P) and small merchant payments (below ₹2,000) remain free for users.

MoSPI Considers Diary-Based HCES for High-Income Households to Tackle 9.8% Urban Non-Response Rate

To counter rising non-response from affluent households in gated societies, MoSPI is piloting a 'diary-based' self-reporting method for the next Household Consumption Expenditure Survey (HCES) in 2027-28. This shift is critical because the HCES data directly impacts CPI basket weights, inflation targeting by RBI, and policy making, but raises concerns about data comparability due to differential recall errors between survey methods.