
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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The United Democratic Front is heading for a significant win in Kerala's local body or assembly bypolls, with Congress leaders framing the results as a direct rebuke of the ruling CPI(M)-led Left Democratic Front government.
Speaking at the Kerala Pradesh Congress Committee headquarters in Thiruvananthapuram, KPCC president Sunny Joseph said the emerging verdict reflected voter rejection of what he called the LDF government's "anti-people policies." The UDF, led by the Indian National Congress, has traditionally alternated power with the LDF in Kerala, and a strong showing would reinforce that competitive cycle ahead of the next state assembly election.
Kerala's political landscape has historically swung between two blocs, the Congress-led UDF and the CPI(M)-led LDF, with the Bharatiya Janata Party making incremental inroads in recent cycles. A decisive UDF performance would suggest the LDF has lost ground with voters on governance issues, though the specific policies driving the swing are not detailed beyond the Congress characterisation of "anti-people" measures.
For the LDF, a poor showing puts pressure on the Pinarayi Vijayan-led state government to recalibrate its policy posture. Kerala's government has been active on welfare spending and infrastructure, but has also faced criticism over local taxation, administrative decisions, and economic conditions affecting ordinary residents.
The final seat tallies will clarify the margin and geographic spread of the UDF's lead, whether this is a broad statewide swing or concentrated in specific districts. A wide margin would give Congress momentum going into the 2026 Kerala assembly election, the next major electoral contest in the state. Watch for official LDF and CPI(M) responses, which will indicate whether the party acknowledges a policy correction is needed or contests the UDF's framing of the result.
Results are still emerging, and the final picture on seat counts and vote shares will sharpen the political reading of this verdict over the coming hours.

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.