
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 7, 2026 · 2 min read · By Rishabh Bhardwaj
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N. Rangasamy has resigned as Puducherry's Chief Minister, triggering a government formation process in the union territory after his party's win in the Assembly elections.
Rangasamy confirmed shortly after submitting his resignation that a letter staking claim to form the next government would be sent to the Lieutenant Governor very soon. The move is a standard constitutional step: an outgoing Chief Minister resigns, and the party or alliance with a majority then formally stakes claim before the Lt. Governor, who invites them to form the government.
The Lt. Governor of Puducherry, who serves as the constitutional head of the union territory, must now receive the claim letter and invite Rangasamy or his designated leader to prove majority support. In most cases following a decisive election result, this is a formality rather than a contested process.
Puducherry operates differently from full states: as a union territory with a legislature, its Chief Minister functions alongside a Lt. Governor who holds significant administrative powers, making the Governor's role more active than in typical states.
The key next steps are the formal submission of the claim letter, the Lt. Governor's invitation to form government, and the swearing-in ceremony. Whether Rangasamy returns as Chief Minister or another name is proposed by the winning side will become clear once the claim letter is filed.
The source article provides limited detail on the election outcome, coalition composition, or seat counts, so the full political picture awaits further reporting.

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.