
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 10, 2026 · 2 min read · By Rishabh Bhardwaj
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C Joseph Vijay, the Tamil film star widely known as Vijay, has been sworn in as Chief Minister of Tamil Nadu after his party, Tamilaga Vettri Kazhagam (TVK), won the state assembly elections.
The transition marks a striking shift in Tamil Nadu politics. Vijay founded TVK and converted his massive fan base into an organised political movement, a path that has precedent in Tamil Nadu, the state has a long history of film stars crossing into politics, including the late M.G. Ramachandran and J. Jayalalithaa, both of whom served as chief ministers after careers in cinema.
Vijay is one of Tamil cinema's biggest names, with a following that spans Tamil Nadu and the broader Tamil diaspora. He formally entered politics by launching TVK, building a party structure around that existing popularity. The election result suggests he successfully converted fan loyalty into votes at scale.
Tamil Nadu is one of India's most industrialised southern states, home to major auto manufacturing, textiles, electronics assembly, and a large IT services sector. The chief minister's office carries significant weight over state industrial policy, land allocation, labour regulation, and relations with the central government in New Delhi.
The key questions now are how TVK will govern and what policy direction Vijay brings to the role. His party's positions on investment climate, social welfare spending, and Centre-state relations will matter to businesses operating in the state and to investors tracking India's southern growth corridor. Tamil Nadu also plays a significant role in national politics, given its population size and economic output.
Details on TVK's majority, the margin of victory, and cabinet composition are not yet confirmed in available reporting, but the swearing-in signals the formal start of a new political chapter for the state.

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.