
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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Vijay, the actor-turned-politician who founded the Tamilaga Vettri Kazhagam (TVK), was sworn in as Chief Minister of Tamil Nadu, marking a dramatic shift in the state's political landscape. Nine others were also sworn in alongside him. Governor Rajendra Vishwanath Arlekar administered the oath at the Jawaharlal Nehru Indoor Stadium.
TVK's rise to power is one of the more striking political stories in recent Indian state politics. Vijay, widely known as a major Tamil film star, formally entered politics by founding TVK and has now secured the state's top executive office. The party's name translates roughly to Tamil Victory Party, and its electoral win ends the long-running dominance of established Dravidian parties in the state.
The swearing-in at Jawaharlal Nehru Indoor Stadium signals a large, public ceremony designed to underscore the scale of the mandate. Ten members of the new cabinet, including Vijay as Chief Minister, took their oaths before the Governor.
The immediate question is how TVK will govern and which policy priorities Vijay's administration will signal first. Cabinet portfolio assignments will be an early indicator of where the new government intends to focus, whether on welfare schemes, industrial investment, or a departure from previous administrations' approaches. Tamil Nadu is one of India's larger manufacturing and export-oriented states, so the new government's economic stance will matter to businesses and investors operating in the region.
Political observers will also watch how TVK manages relations with the central government in New Delhi, a dynamic that has historically shaped how much fiscal and administrative flexibility Tamil Nadu governments have had. Given TVK's newness as a party, building administrative capacity quickly will be a practical challenge for the incoming team.

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.