Govt Exempts 12.5% LTCG Tax on FPI Investment in G-Secs, Adds 15-40 Yr Bonds to FAR

SC to Hear PIL Against 0.4% MDR on UPI Transactions Over ₹2000 from Oct 15

The Supreme Court will hear a PIL on September 28, 2026 challenging the government's decision to impose a 0.4% Merchant Discount Rate (MDR) on UPI person-to-merchant transactions above ₹2,000, effective October 15. The PIL alleges the framework lacks transparency and is arbitrary, questioning amendments to Section 10A of the Payment and Settlement Systems Act.

Govt Proposes 0.25-0.5% MDR on UPI Transactions Above ₹2,000 via PSS Act Amendment

The government has proposed allowing a Merchant Discount Rate (MDR) of 0.25-0.5% on UPI transactions above ₹2,000 via an amendment to Section 10A of the Payment and Settlement Systems Act, 2007. This reverses a decade-long zero-MDR policy, potentially undermining financial inclusion, formalisation, and investment in UPI infrastructure. While only 5% of transactions by volume are affected, they account for 65% of transaction value, making this a significant policy shift.

JCRA Upgrades India's Sovereign Rating to A- on 7.7% GDP Growth, NPA Ratio Falls to 1.8%

Japan Credit Rating Agency (JCRA) upgraded India's sovereign rating to A- from BBB+, citing strong economic growth of 7.7% in FY2026, robust private consumption, public investment, and improvements in the banking sector. The upgrade reflects India's sustained growth trajectory and enhanced financial stability, with gross NPA ratio falling to 1.8% due to IBC and RBI supervision.

Govt Notifies Payment Act Changes: No Charges on UPI/RuPay Transactions Up to ₹2,000

The government has amended the Payment and Settlement Act, 2007, to prohibit banks from imposing any charges on UPI and RuPay debit card transactions up to ₹2,000. This move aims to protect small digital payments from fees while leaving the door open for potential charges on larger transfers.

LIC OFS: Govt Sheds 6.5% Stake, Mops Up ₹31,000 Cr Towards FY27 Divestment Target of ₹80,000 Cr

The government is selling 6.5% of its stake in LIC via Offer for Sale (OFS), expected to raise approximately ₹31,000 crore. The OFS was oversubscribed 3.32 times by institutional investors, reflecting strong market confidence. This move brings the government closer to its FY27 disinvestment target of ₹80,000 crore, with total disinvestment receipts so far at ₹21,201.13 crore.

Taxation and Other Laws (Amendment) Bill, 2026: Govt Empowered to Levy MDR on UPI; Free UPI Regime Ended

The Taxation and Other Laws (Amendment) Bill, 2026, clears Lok Sabha, repealing the zero-MDR rule on UPI since Jan 2020. The government can now decide which payments are free; assurances that only large merchants will be charged are not legally binding. Implications for digital payments, cash usage, and US trade negotiations.

CBI Registers ₹1,816.22 Cr EPFO Investment Fraud Case Against Reliance Capital, Anil Ambani

The CBI has registered a major fraud case involving EPFO funds invested in Reliance Capital NCDs. This highlights issues of corporate governance, public sector investment safety, and regulatory oversight. For exams, focus on EPFO's investment norms, CBI's jurisdiction, and criminal provisions invoked.

India’s Gold Demand Shifts: Investment ETFs Hit Record 20 Tonnes, Jewellery Falls 17% in H1 2026

India's gold market is undergoing a structural shift: jewellery demand is falling (down 17% in H1 2026) while investment demand via ETFs, bars, and coins is surging. This dual-track trend, alongside a 124% YoY rise in gold-backed loans, signals financialisation of gold and holds major implications for India's current account, monetary policy, and financial stability.