
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, chief of the Tamilaga Vettri Kazhagam (TVK), is set to be sworn in as Tamil Nadu's Chief Minister today in a ceremony that marks a significant shift in the state's political landscape.
Nine ministers are expected to take the oath alongside Vijay at the swearing-in. The cabinet list submitted to the governor includes "Bussy" N. Anand, Aadhav Arjuna, and K.A. Sengottaiyan as prominent names.
TVK's rise to power represents a new entrant displacing established parties in one of India's largest and most industrially significant states. Tamil Nadu contributes substantially to India's manufacturing output, auto sector, and IT exports, making its political leadership directly relevant to business and investor sentiment in the region.
Details on the exact timing, venue, and alliance partners supporting the new government have been widely reported but were not fully specified in the available source material. The composition of the cabinet, particularly whether alliance partners hold ministerial berths, will signal how stable the new government's legislative majority is likely to be.
The early cabinet choices will indicate which policy priorities the new government intends to push first. Tamil Nadu's ongoing projects in semiconductor manufacturing, EV supply chains, and infrastructure investment mean that the new CM's economic stance will be closely watched by domestic and foreign investors alike. Continuity or disruption in state-level industrial policy could affect ongoing deals and future investment commitments to 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.