
India to Restore UPI Merchant Fees, PhonePe Gains Most
India's government plans to amend the Payment and Settlement Systems Act to restore UPI merchant discount rates, ending the zero-MDR regime in place since January 2020.
Key Takeaways
May 4, 2026 · 2 min read · By Rishabh Bhardwaj
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Vijay's party TVK has pulled off a major political upset in Tamil Nadu, with VS Babu defeating Chief Minister M. K. Stalin in his home constituency of Kolathur. Stalin had held the seat through three consecutive Assembly elections, 2011, 2016, and 2021, making Kolathur one of the most symbolically important seats in the state.
Losing in one's own constituency is among the most damaging outcomes possible for a sitting chief minister. Kolathur, located in Chennai, had been treated as a safe seat for the DMK leader across a decade of Tamil Nadu politics. A defeat here carries weight far beyond a single constituency result.
TVK, the party founded by actor-turned-politician Vijay, has been positioning itself as a fresh challenger to Tamil Nadu's established political order. A win against Stalin personally, rather than just against DMK candidates elsewhere, would mark a significant early statement of electoral intent for the young party.
The full scale of DMK's performance across other constituencies will determine whether this is an isolated upset or part of a broader shift in voter sentiment. How Stalin and DMK respond, both in terms of political messaging and party positioning, will be closely watched in the lead-up to the next Tamil Nadu Assembly election.
For TVK and Vijay, a win of this magnitude in a debut electoral contest could accelerate the party's credibility and fundraising, and attract political talent currently sitting on the sidelines.

India's government plans to amend the Payment and Settlement Systems Act to restore UPI merchant discount rates, ending the zero-MDR regime in place since January 2020.
India's government has introduced the Taxation and Other Laws (Amendment) Bill, 2026, proposing changes to payments regulation, income tax, and the Finance Act to attract FDI and support Make in India. The Bill's final shape will depend on parliamentary debate and committee review.
The government's Taxation and Other Laws (Amendment) Bill, 2026, proposes to replace the blanket UPI MDR ban with a system allowing the Centre to notify which payment modes stay fee-free.
Prime Minister Narendra Modi inaugurated the Rs 5,000 crore Bhogapuram greenfield airport in Andhra Pradesh, built under a public-private partnership model. He also laid foundation stones for infrastructure projects worth nearly Rs 18,000 crore in the state, signalling a broad investment push for the region.