A Public Interest Litigation has been filed in the Supreme Court challenging the Centre's decision to impose a 0.4 per cent Merchant Discount Rate (MDR) on UPI person-to-merchant transactions exceeding Rs 2,000. The plea argues that the levy was introduced without adequate statutory safeguards, transparency, or public consultation, and questions its constitutional validity and potential adverse effects on merchants and consumers.
India's services activity expanded in August, but the pace of growth cooled to the second-slowest since March 2022, despite stronger output and new business, according to the HSBC India Services PMI Business Activity Index.
State Bank of India (SBI) is developing an innovative solution to assess the creditworthiness of small businesses lacking GST registration by utilising UPI transaction data. This initiative aims to provide end-to-end digital loans within a day, addressing the financial exclusion of many small enterprises.
The National Payments Corporation of India (NPCI) stated that the Merchant Discount Rate (MDR) "is distributed only amongst the UPI ecosystem, to further invest into infrastructure resilience, innovation, cybersecurity (protecting the UPI infrastructure with banks and non-banks) and customer service."
The Congress party has criticised the government's recent notification regarding UPI transactions, alleging it paves the way for users to be charged fees, particularly for transactions above Rs 2,000. The party claims the government lacks transparency and questions if the move is to benefit American firms. The government, however, states that charges are necessary for the system's sustainability and infrastructure upgrades, with the Finance Minister clarifying that Merchant Discount Rate (MDR) applies to merchants, not customers.
Opposition parties, including Congress, TMC, and RJD, have strongly criticised the government's decision to impose a 0.4% Merchant Discount Rate (MDR) on UPI transactions exceeding Rs 2,000 made to merchants. They allege the move is a result of "American imperialism" and will lead to increased commodity prices, while the government maintains the charge is on merchants and not consumers, with person-to-person transactions remaining free.
The Congress party has criticised the government's new 0.4% charge on UPI transactions above Rs 2,000 for merchants, terming it a "Modi tax". Opposition leaders, including Rahul Gandhi and Mallikarjun Kharge, allege that this move will ultimately burden consumers through price hikes and accuse the government of succumbing to American pressure to dilute India's zero-MDR policy. The government states the charge will support banks and fintechs.
Jio Platforms Ltd, the digital services arm of Reliance Industries, has secured Sebi's final observation to launch an initial public offering (IPO) aiming to raise approximately USD 4 billion (Rs 37,700 crore), potentially making it the largest IPO in India's history.
The Indian government has introduced a 0.4% fee on UPI transfers above Rs 2,000 made to merchants, effective October 15, ending nearly six years of free merchant payments. This move led to initial rallies in fintech stocks like Paytm and Mobikwik, though some later pared gains. Person-to-person transactions and small payments remain free for customers, with the fee being a Merchant Discount Rate (MDR).
Chief Economic Advisor V Anantha Nageswaran highlights the challenges of digital access, data governance, interoperability, and cyber security in India's digital public infrastructure (DPI), despite its world-class scale.
Trai has brought app-based spam calls under tighter regulations through new A2P call rules.
'It is not about a place with fewer incidents of violence but a city where women have real agency in planning their daily lives.'
India's UPI system continues its rapid growth, dominating retail payments. Recent amendments to the Payment and Settlement Systems Act allow for targeted Merchant Discount Rates (MDR) on high-value merchant transactions, aiming to create a self-sustaining revenue model for the ecosystem while keeping P2P and low-value payments free. This move could generate significant revenue and encourage ecosystem participation.
The Congress party has criticised the Modi government over a notification regarding UPI transactions, alleging it paves the way for imposing fees, especially on transactions above Rs 2,000. Rahul Gandhi claimed the government is surrendering to American pressure, while Mallikarjun Kharge highlighted the potential burden on common citizens amidst inflation. The government's notification prohibits charges on UPI transactions up to Rs 2,000 but remains silent on higher amounts, sparking fears of a "Digital Payments Tax."
The ACSEL Technology Forum, a Karnataka government Centre of Excellence in AI, has launched Tathyakosh.in, a digital public good designed to make India's extensive public data more accessible. This platform consolidates over 1.5 million datasets from 458 sources, addressing the challenge of fragmented data discovery across various government and research portals. It aims to benefit researchers, startups, and technology teams in sectors like healthcare, agriculture, and financial inclusion by providing a structured and discoverable data infrastructure.
India launched 'Suryapath Tiranga', a unique initiative involving over 50 Indian missions globally, to digitally relay images of the tricolour across multiple time zones, starting from Fiji, to mark the country's 80th Independence Day.
Jammu and Kashmir Chief Minister Omar Abdullah has expressed support for the Centre's decision to levy charges on UPI transactions, citing the cost of maintaining the digital payment infrastructure. However, he emphasised the need to protect retail consumers from these fees. Abdullah also discussed the upcoming seven-day Assembly session, highlighting the government's commitment to smooth functioning and addressing MLAs' concerns, and touched upon efforts to tackle drainage issues affecting water bodies.
If India does get $100 billion a year in FDI, it would be a game-changer in every possible way. FPIs would come rushing back, AI or no AI, points out Debashis Basu.
The UN General Assembly has adopted a resolution, backed by India, to correct the world map for a more accurate representation of continental landmasses. The resolution addresses the distortions caused by the widely used Mercator projection, which minimises the perceived sizes of regions like Africa, Latin America, and South Asia, promoting an unbalanced global view. India supports the move towards more accurate cartographic practices, specifically endorsing broader use of Equal Area map projections.
'It's A Cat And Mouse Game.'
FATF Vice-President Vivek Aggarwal has urged the fintech industry to increase investments to combat emerging threats from AI, scam compounds, virtual digital assets, and quantum computing. He warned that these technological challenges pose a significant risk to India's rapid growth in the fintech sector, highlighting a current lack of adequate investment and risk realisation within the industry.
The opposition has intensified its criticism of the government's decision to impose a 0.4 per cent Merchant Discount Rate (MDR) on UPI transactions above Rs 2,000, effective October 15. Leaders like Rahul Gandhi and Jairam Ramesh allege the move is a result of US pressure, particularly from American card companies, and demand an immediate rollback, warning of increased costs for consumers.
Sri Lanka's remarkable lower-order resistance helped deny India a series sweep, with the tailenders facing more deliveries than the team's openers across the series.
The Reserve Bank of India (RBI) has rejected Tata Sons' application to surrender its non-banking finance company (NBFC) licence, a decision that mandates a public markets listing for the conglomerate's holding company as it is classified as an upper-layer NBFC.
RBI Governor Sanjay Malhotra stated that the central bank consistently views fintechs as 'valuable partners' in shaping India's future financial system, crediting the sector with expanding financial inclusion, enhancing customer experience, and streamlining credit delivery, particularly for MSMEs.
Prime Minister Narendra Modi, addressing the nation from the Red Fort on Independence Day, declared that India is undergoing a rapid transformation across various sectors and is firmly on track to become a developed nation by 2047.
Banking services, particularly at public sector banks across India, were impacted by a nationwide strike called by the United Forum of Bank Unions (UFBU) to demand the immediate implementation of a five-day workweek and resolution of pending wage-related issues.
SEBI Chairman Tuhin Kanta Pandey stated that the National Stock Exchange (NSE) has not submitted any proposal seeking approval to trade on its own platform after getting listed, and such trading is currently not permitted. He also confirmed that SEBI would examine concerns raised by brokers and asset management companies regarding the new UPI Merchant Discount Rate (MDR) framework.
Arundhati Bhattacharya, Salesforce President and CEO for South Asia, stated that cloud and AI are democratising capabilities, offering India a unique opportunity to leapfrog in technology. Speaking at the IMC Chamber of Commerce, she emphasised that AI will create more jobs and urged Indian businesses to transform using technology, rather than merely digitising. She also highlighted the significant economic potential of AI adoption for India.
Meta has restricted access in India to a viral AI-generated video depicting Kerala Chief Minister VD Satheesan dancing with KSEB officials. The video, which garnered 1.78 crore views, was restricted following a legal request, though the creators believe it wasn't due to the CM's objection, as he had previously expressed excitement about it.
'The fundamental issue that I have raised, how come India's GDP in current prices went down from Rs 86 lakh crore down to Rs 80 lakh crore -- a staggering erasure of Rs 6 lakh crore. This disappearance of Rs 6 lakh crore has not been answered by anyone.'
Domestic passenger vehicle dispatches in India surged by 36.5 per cent year-on-year to 4,39,309 units in August, marking the highest ever sales for the month, according to the Society of Indian Automobile Manufacturers (SIAM).
The Congress party has strongly refuted government claims that its MPs on the Parliament Standing Committee on Finance supported a fee on high-value UPI payments. Congress leaders, including Gaurav Gogoi and Manish Tewari, stated that the "UPI tax" proposal was not specifically discussed by the committee, accusing the Modi government of diverting attention from public backlash and appeasing US companies. The government, however, cited the committee's report which pressed for a tiered Merchant Discount Rate (MDR) framework.
Hindustan Aeronautics Limited (HAL) has delivered LCA Tejas FOC twin-seater trainers and HTT-40 basic trainer aircraft to the Indian Air Force, and Dhruv next-generation helicopters to Pawan Hans. This significant handover, witnessed by Defence Minister Rajnath Singh, marks a crucial step in India's journey towards self-reliance in the aerospace sector, showcasing HAL's capabilities across military, civil rotary-wing, and pilot training aviation.
State-run defence major Hindustan Aeronautics Limited (HAL) has delivered LCA Tejas Final Operational Clearance twin-seater trainers and HTT-40 basic trainer aircraft to the Indian Air Force, along with Dhruv next-generation helicopters to Pawan Hans. This significant handover, witnessed by Defence Minister Rajnath Singh, marks a crucial step in India's journey towards self-reliance in the aerospace sector, showcasing HAL's diverse capabilities in military, civil, and training aviation.
Former Rajasthan chief minister Ashok Gehlot has criticised the Centre for introducing a 0.4% charge on UPI transactions above Rs 2,000, alleging the decision was influenced by pressure from the United States and its payment companies like Visa and Mastercard. He highlighted a perceived shift in the government's stance on Merchant Discount Rate (MDR) for UPI, claiming it would ultimately burden consumers and small businesses while benefiting American firms.
'Applying AI to change the lives of Indians and at population scale -- just like we did with DPI [digital public infrastructure] -- is really where it's going to go.'
Urban Indian millennials are caught in an algorithmically amplified consumption spiral where social media normalises spending patterns that systematically undermine retirement security.
UN Women has issued a stark warning that the rapid advancement of artificial intelligence (AI) is placing women at a higher risk of discrimination and digital violence, citing studies that reveal significant gender bias in AI systems and large language models.
A think tank, GTRI, has urged India to resist US pressure regarding its UPI policies, advocating for competition, policy autonomy, and a sustainable payments ecosystem. This comes as the Lok Sabha passed a bill allowing charges on UPI, and the US has criticised India's digital payment systems, raising concerns about the future of India's digital payment landscape.
