IBC Achieves ₹4.11 Lakh Crore Recovery, Rescues 1,376 Firms; Amendment Bill 2026 Passed

Lok Sabha Passes Bill to End Zero MDR Guarantee for UPI; Govt Can Now Notify Charges on Merchants

The Taxation and Other Laws (Amendment) Bill, 2026, passed without debate, removes the statutory zero-MDR guarantee for UPI, allowing the government to impose charges on merchants. This affects 55 crore users and the digital payments ecosystem. The Bill also provides 15-year tax exemptions for foreign electronics manufacturers and simplifies rules for fund managers, raising concerns about asymmetry between domestic and foreign stakeholders.

FAST-DS 2026: Income Tax Dept Nudges Taxpayers to Disclose Foreign Assets by Dec 31

The Income Tax Department has begun emailing taxpayers who may hold undisclosed foreign assets, urging them to use the FAST-DS 2026 disclosure window (open till Dec 31, 2026). This one-time compliance scheme is crucial for small taxpayers like students, NRIs, and tech employees holding ESOPs or overseas accounts, with penalties up to ₹1 lakh or 30% tax plus additional tax.

Govt Proposes Gold Monetisation via Jewellers: 20,000 Tonne Idle Gold, Demat Deposits, Interest Income

The government is planning a new gold monetisation scheme where jewellers, not banks, will collect physical gold deposits from households, issue demat receipts, and pay interest. This aims to unlock over 20,000 tonnes of idle gold, improve India's trade balance, and reduce import dependence — a key reform for economic stability and current account management.

Government Imposes 0.4% MDR on UPI Transactions Over ₹2,000 from October 15

The government has firmly ruled out any rollback of the 0.4% Merchant Discount Rate (MDR) on UPI transactions above ₹2,000, effective October 15, 2026. This marks the end of the zero-MDR regime for merchant payments, aiming to make the UPI ecosystem self-sustainable while keeping person-to-person and small payments free.

CBDT Decriminalises Tax Defaults: Removes Arrest Provisions from Recovery Rules Under Finance Act 2026

The CBDT has removed arrest and detention provisions from tax recovery rules with retrospective effect from April 1, 2026, aligning with Budget 2026-27’s decriminalisation of technical defaults. Tax recovery will now rely solely on property attachment and sale, marking a shift from personal coercion to property-based measures.

Lok Sabha Passes Bill Amending Payment Act to Allow Charges on UPI Transactions

Lok Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026 which amends the Payment and Settlement Systems Act, 2007 to allow the government to permit banks and service providers to levy charges on UPI and other notified electronic payment modes. This marks a major policy shift from the current zero-charge regime for UPI transactions.

RBI Issues Comprehensive Loan Recovery Rules: Phone Lock Allowed After 60 Days, Compensation ₹250/hr for Delayed Restoration

RBI has issued a consolidated framework for loan recovery by commercial banks, effective January 1, 2027. For the first time, it regulates technology-based restrictions on financed devices (smartphones/laptops) — allowing phone locking after 60 days of default, but with strict safeguards including ₹250/hour compensation for delayed restoration. This is a high-impact regulatory reform for Banking exams and UPSC GS3.

MSME Development Amendment Bill 2026 Passed: 50% Interim Payment, Faster Dispute Resolution

Lok Sabha passed the MSME Development Amendment Bill, 2026 without debate, tackling delayed payments with faster dispute resolution and empowering courts to order 50% interim payment to suppliers. MSMEs contribute 31% to GDP, 36% to manufacturing, and 41% to exports. The Bill is now cleared by Parliament.