The Indian government has challenged Congress leader Rahul Gandhi's criticism of levying fees on UPI payments above Rs 2,000 to merchants. The government highlighted that a parliamentary standing committee, which included Congress MPs, had previously backed a tiered Merchant Discount Rate (MDR) framework for UPI. This move aims to ensure the financial sustainability of the UPI ecosystem and reduce its dependence on government subsidies, a concern raised by the committee due to the significant funding gap between allocations and operational costs.
India has established a high-level inter-ministerial body, the AI Governance and Economic Group (AIGEG), to steer the country's national AI governance strategy. The AIGEG will coordinate policy across ministries and oversee cross-sectoral governance issues, supported by a Technology and Policy Expert Committee (TPEC).
The move comes amid growing demand from organisations in India for local access to Claude.
Prasar Bharati Chairman Prasoon Joshi voiced concerns over AI's impact on India's cultural heritage, including music and endangered languages, advocating for human-AI collaboration. Meanwhile, a Spotify report revealed significant growth in royalties for Indian artists, with linguistic diversity driving economic strength in the creative industries, highlighting the platform's role in enabling talent across various Indian languages.
A new report by ADP reveals that one in two Indian companies plan to adopt AI-powered payroll systems within the next 12 months, driven by the need for automation in workforce management, compliance, and compensation decisions. However, firms are increasingly cautious about data protection risks, especially with the implementation of the Digital Personal Data Protection (DPDP) Act, 2023.
The Indian government has introduced a 0.4 per cent charge on UPI payments exceeding Rs 2,000 made to merchants, with a cap of Rs 300 for transactions of Rs 75,000 and above. This policy shift ends the zero-MDR regime, which was previously criticised by financial institutions. While essential sectors and capital markets have specific fee structures, small merchants with monthly UPI QR code earnings up to Rs 1 lakh remain exempt. Person-to-person transfers are unaffected, and measures are in place to prevent merchants from passing these costs to customers.
Tata Consultancy Services has partnered with French artificial intelligence firm Mistral to provide frontier grade AI solution, Mistral Forge, for enterprises across the world.
World Bank South Asia Chief Economist Franziska Ohnsorge advocates for the removal of obstacles hindering the adoption of artificial intelligence to foster business growth and job creation, particularly in South Asia.
Dell Technologies is significantly expanding its domestic manufacturing in India, with a majority of its servers now produced locally, driven by data sovereignty and AI adoption. The company also launched new AI infrastructure solutions, including PowerStore Elite, designed for secure on-premises data management and AI workflows, while asserting that AI creates more jobs.
The World Bank's "World Development Report 2026" urges developing countries to adopt low-cost AI tools to accelerate progress in healthcare, education, and judicial services. The report highlights AI's potential to boost productivity and improve public services, while noting that jobs in high-income countries are more at risk from automation than those in developing nations.
Chief Economic Advisor V Anantha Nageswaran has stressed the urgent need for India's financial sector to proactively address the safety and security risks of artificial intelligence, stating that waiting for problems to materialise is not an option.
West Bengal Chief Minister Suvendu Adhikari asserted that his government would adopt a 'zero tolerance' policy against vandalism carried out under the guise of religious slogans.
An Indian AI Research Organisation official says India has adopted a balanced and pragmatic approach to AI regulation, avoiding the extremes of the US and EU models.
Generative artificial intelligence (AI) is beginning to alter hiring patterns in South Asia, with multinational companies (MNCs) and firms integrated into global value chains (GVCs) reducing recruitment more sharply than domestic firms, signalling the technology's early impact on the region's export-oriented services sector, according to the World Bank's World Development Report 2026.
Cactus Technology Solutions Private Limited has been empanelled by the National e-Governance Division (NeGD) to provide AI and machine learning expertise for government-led digital initiatives.
Vice President C P Radhakrishnan has championed the use of artificial intelligence for good governance, highlighting its potential to improve government services and build an inclusive and efficient India.
Finance Minister Nirmala Sitharaman has urged the Reserve Bank of India to accelerate its central bank digital currency initiatives, emphasising the need to sharpen capabilities with the digital rupee amidst rapid advancements in tokenisation, agentic AI, and quantum computing. She also highlighted critical concerns regarding cybersecurity, warning that autonomous AI systems are evolving rapidly and require robust safeguards. Sitharaman proposed a federated industry platform to give India's technology ecosystem a collective international voice.
The message is becoming clearer: Employees who fail to meaningfully integrate AI into their work risk falling behind in performance assessments.
Union Minister Jitendra Singh stated that human-led artificial intelligence will be the defining force in India's journey to becoming a developed nation by 2047. Speaking at the 29th National Conference on e-Governance, he emphasised that technology must strengthen governance without replacing human accountability, advocating for responsible AI deployment with citizens at the centre. The conference concluded with the adoption of the Jaipur Declaration on e-Governance 2026, outlining a roadmap for AI-enabled, data-driven, and secure digital governance.
The biggest challenge to widespread deployment is no longer AI. It is the financial and commerce infrastructure that was built decades ago for deterministic software and human interactions -- not autonomous AI agents.
A Deloitte report reveals that Indian enterprises are leading the world in large-scale AI adoption, but are facing a significant skills gap in AI expertise.
Union Steel Minister HD Kumaraswamy has urged the Indian steel industry to adopt advanced technologies like AI, Machine Learning, and IoT to enhance global competitiveness and productivity. Speaking at a Chintan Shivir, he highlighted that digitalisation is crucial for achieving ambitious steel capacity targets by 2035 and addressing challenges such as operational efficiency, decarbonisation, and export competitiveness. The minister also emphasised how technology can improve safety and reduce downtime in steel plants.
Prime Minister Narendra Modi cautioned against the 'weaponisation' of technology and critical minerals at the BRICS summit, advocating for cooperation to foster shared prosperity. Concurrently, Chinese President Xi Jinping announced plans for an open-source AI ecosystem for BRICS nations, positioning Beijing as a key technology partner amid global AI competition.
Fuel pump dealers in Madhya Pradesh plan to stop accepting UPI payments exceeding Rs 2,000 for petrol and diesel from October 16, citing concerns over the proposed Merchant Discount Rate (MDR). The Confederation of All India Traders (CAIT) has urged the government to reconsider the MDR imposition, warning it could hinder digital payment adoption and impact traders' profits.
Coforge believes that the rapid adoption of AI is disrupting the traditional labour model but also creating new high-margin opportunities in the IT services industry.
The challenge thrown by the youth movement creates the opportunity for a more consequential debate on India's economic trajectory because it must remain centered on India's youth as its driving impulse, asserts former foreign secretary Shyam Saran.
The Retailers Association of India (RAI) has voiced concerns that the government's new 0.4 per cent Merchant Discount Rate (MDR) on UPI transactions above Rs 2,000 could reverse the progress of digital payment adoption among small retailers. This fee, effective October 15, places the burden on merchants operating on thin margins, potentially pushing them back to cash transactions and undermining the government's formalisation agenda, especially ahead of the festive season.
State Bank of India Chairman C S Setty stated that banks will take three to four months to deploy the significant funds mobilised through foreign currency non-resident (bank), or FCNR(B), deposits, which is unlikely to cause "abnormal lending". He also highlighted the need for agentic artificial intelligence (AI) costs to fall sharply for its widespread deployment in India, envisioning its role in transforming banking from fraud detection to personalised financial assistance.
Fintech company BharatPe has expressed strong support for the government's new Merchant Discount Rate (MDR) framework for UPI merchant transactions, which introduces a 0.4% fee on transfers exceeding Rs 2,000. The company explicitly distanced itself from critical remarks made by its former co-founder Ashneer Grover, clarifying that his views do not represent BharatPe's stance. BharatPe CEO Nalin Negi highlighted that the framework aims to strengthen digital payment economics, protect consumers and small merchants, and expand adoption in underserved markets, with most transactions remaining unaffected.
Indian companies LTM and Mastek announced new international partnerships for cloud, AI, and digital transformation. Jio BlackRock AMC launched a new hybrid fund. NMIMS partnered with Coursera for AI-enabled learning, and MakeMyTrip Foundation rebuilt a flood-damaged school in Manali.
Former Haryana Chief Minister Bhupinder Singh Hooda has criticised the newly introduced fees on UPI payments, stating they will lead to increased inflation for the common man. He dismissed government claims that customers would not be burdened, arguing that merchants would pass on the costs. Hooda demanded the immediate withdrawal of these fees, highlighting that the government's move contradicts its 'Digital India' initiative.
Mukesh Ambani, Chairman of Reliance Industries, has called upon India's engineering talent to spearhead Jio's ambitious artificial intelligence initiative. He emphasized India's role as a creator and global leader in AI, not just a consumer, outlining the execution phase of Reliance Intelligence with partnerships and a focus on developing affordable, language-fluent AI for all Indians.
Google CEO Sundar Pichai highlighted the transformative potential of AI at the India AI Impact Summit, emphasizing its role in scientific discovery, economic development, and workforce evolution.
Opposition MPs have voiced strong criticism against the government's new fee on UPI payments exceeding Rs 2,000 to merchants, calling it "anti-people" and expressing widespread "outrage". The issue was raised in a Parliamentary Standing Committee meeting, where concerns were also flagged regarding the methodology of GDP growth calculation and the government's stance on Virtual Digital Assets.
A new Merchant Discount Rate (MDR) on UPI transactions above Rs 2,000, effective October 15, could force small merchants and price-sensitive consumers to revert to cash, according to economic think tank GTRI. The move, which introduces a 0.4 per cent MDR with a Rs 300 cap and concessional rates for specific categories, is questioned by GTRI founder Ajay Srivastava, who suggests it's not a revenue issue for the government but potentially a response to US pressure regarding UPI and RuPay's preferential market position.
Fintech firm BharatPe has publicly supported the government's new Merchant Discount Rate (MDR) framework for UPI merchant transactions, which introduces a 0.4% fee on transfers over Rs 2,000. The company has also distanced itself from its former co-founder Ashneer Grover's strong criticism of these changes, stating his remarks are personal and do not reflect BharatPe's official position. BharatPe believes the new framework will strengthen digital payment economics while protecting consumers and small merchants.
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.
The All India Football Federation (AIFF) has opened applications for its Sportspersons of Outstanding Merit (SOM) roster, a crucial step under the newly adopted National Sports Governance Act. This initiative aims to induct retired players into the federation's General Body, ensuring greater representation and direct involvement in governance. The process outlines specific eligibility criteria across various tiers of sporting achievement and allows direct applications, bypassing state association endorsements.
The Congress party has strongly refuted claims by Parliamentary Standing Committee on Finance Chairperson Bhartruhari Mahtab that opposition MPs supported levying a Merchant Discount Rate (MDR) on UPI transactions. Congress MP Manish Tewari termed Mahtab's remarks "erroneous and fallacious," clarifying that the committee's recommendation was to "explore" revenue models, not to implement MDR. The party accused Mahtab of misleading due to his recent switch to the BJP.
Football administrator Ranjit Bajaj has filed a writ petition in court, seeking directions for the All India Football Federation (AIFF) to immediately schedule and complete elections for its Executive Committee. Bajaj argues that the AIFF has already adopted a compliant constitution, making further deferment unjustified.
