
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.
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May 8, 2026 · 2 min read · By Rishabh Bhardwaj
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Tamil Nadu Governor's office has said that actor-turned-politician Vijay was not invited to be sworn in as Chief Minister because his party, Tamilaga Vettri Kazhagam (TVK), failed to demonstrate a majority in the assembly. The statement comes amid political tensions following recent election results in the state.
According to sources cited by NDTV, the key sticking point was the absence of formal letters of support from two smaller parties, Viduthalai Chiruthaigal Katchi (VCK) and Indian Union Muslim League (IUML). Both parties won two seats each, and without written backing from them, TVK could not prove it commanded enough numbers to form a government.
In Indian constitutional practice, a Governor invites the leader of the largest party or coalition to form a government only after being satisfied that the claimant can demonstrate a majority on the floor of the house. Written letters of support from allied parties are the standard way to show that count. Without them, the Governor's office has legal and procedural cover to withhold the invitation.
VCK and IUML together hold four seats. While that number may appear small, in a closely contested assembly, those seats could be the difference between a majority and a shortfall. If TVK's seat tally on its own falls short of the halfway mark, those four seats become critical to any majority claim.
The Governor's office has effectively put the ball back in TVK's court. Vijay's party will need to secure and submit formal written support from VCK, IUML, or other parties to revive its claim to government formation. Until that happens, the path to the Chief Minister's chair remains blocked on procedural grounds.
The development is a significant setback for Vijay, who made a high-profile entry into electoral politics with TVK. Whether the missing letters reflect a genuine breakdown in alliance negotiations or a tactical delay by the smaller parties is not clear from available information. What is clear is that the Governor's office has cited a specific, documentable gap, the absence of those letters, rather than a broader political judgment.
Observers will be watching whether VCK and IUML choose to submit support letters, align with another claimant, or remain silent as the government formation process plays out.

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