RBI Challenges Madras HC on Banking Regulation Act 1949, Supreme Court to Rule on 'Nominee' Definition

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.

Supreme Court Directs RBI, States, CBI on Digital Arrest Scams: SOP, Kill Switch, ₹18 Cr Restored

The Supreme Court issued interim directions to combat digital arrest scams, including RBI SOP for banks, operationalization of grievance redressal and money restoration modules, and examination of a 'kill switch' for calls. The court noted a decline in reported fraud but stressed continued vigilance. This is crucial for understanding judicial activism in cybercrime and institutional coordination.

ECI Resolves Internal Divide: Voters Exempted, Form 6 Reverted; Maharashtra Drought in 75% Tehsils; Bank Unions Strike from Sept 28

The Election Commission addressed internal concerns by exempting voters from hearings for discrepancies, reverting Form 6 changes, and setting up a committee on ECINet. Maharashtra declared drought in 75% of tehsils with an 18% rainfall deficit, triggering relief measures. Bank unions called a three-day nationwide strike demanding a five-day workweek and PLI changes.

Madras HC: TANPID Act Property Attachments Prevail Over PMLA; Non-Obstante Clause Key

Madras High Court ruled that attachments under the Tamil Nadu Protection of Interests of Depositors (TANPID) Act, 1997, take precedence over those under the Prevention of Money Laundering Act (PMLA), 2002, due to the presence of non-obstante clauses in the state law. This judgment protects thousands of depositors duped by fraudulent financial institutions and reinforces federal balance under Article 246 of the Constitution.

RBI Holds Repo Rate at 5.25%; SC Judges Bill Passed as Money Bill; FCRA Amendment Sparks Controversy

This compilation covers critical current affairs for UPSC: the FCRA Amendment Bill facing opposition over asset vesting provisions, the Supreme Court (Number of Judges) Amendment Bill passed as a Money Bill despite controversy, RBI maintaining repo rate at 5.25% with a neutral stance and planning polymer banknotes launch, a new Supreme Court gender sensitivity report replacing the 2023 handbook, and Kerala's worsening floods linked to sedimentation and urbanization. All topics have high Prelims and Mains potential.

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.

NCLT Approves Subhash Chandra's Rs 6.25 Cr Repayment Plan Against Rs 22,006 Cr Claims Under IBC

NCLT sanctioned Subhash Chandra's personal insolvency repayment plan of mere Rs 6.25 crore against admitted claims of Rs 22,006.57 crore, raising serious concerns about related party voting and inadequate claim verification. Banks have alleged that 61.78% voting share in favour came from entities linked to Chandra, potentially undermining the integrity of the IBC resolution process.

ED Identifies Recurring IBC Malpractices Including Section 29A Circumvention and Disproportionate Haircuts

The Enforcement Directorate (ED) has flagged misuse of the Insolvency and Bankruptcy Code (IBC) by defaulting promoters who use collusive resolution processes with disproportionately large haircuts to regain control of their companies. This comes amid growing concerns over low creditor recoveries (average 29% over five years) and legal tensions between IBC's moratorium/immunity provisions and the Prevention of Money Laundering Act (PMLA). Students must understand the conflict between resolution and recovery objectives, key sections (14, 29A, 32A), and the ED's intervention strategy.