
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 8, 2026 · 2 min read · By Rishabh Bhardwaj
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Actor-turned-politician Vijay is set to be sworn in as Tamil Nadu Chief Minister at 11 AM on Saturday, according to reports. The ceremony follows his meeting with the Tamil Nadu Governor on Friday, where he formally staked his claim to form the government.
Vijay secured the backing of the Left parties, his own party TVK (Tamilaga Vettri Kazhagam), and the Congress to cobble together the coalition support needed to demonstrate a majority. The governor's meeting was the constitutional step required before the oath can proceed.
TVK, the party Vijay founded after transitioning from his film career to politics, has positioned itself as a new force in Tamil Nadu's competitive political landscape. The alliance with Congress and the Left gives the coalition a broader base across the state's traditional voter blocs.
Tamil Nadu has historically been dominated by the AIADMK and DMK, making a successful third-force government a significant political shift if confirmed. The reported oath ceremony would mark the first time a party outside those two major formations leads the state in decades.
The cabinet composition and how Vijay distributes portfolios among coalition partners will be the immediate signal of how his government plans to operate. The Left and Congress will each expect representation, and the balance struck could shape early policy priorities.
Vijay's administrative experience is limited, having moved from entertainment into politics relatively recently, so his choice of senior ministers and advisers will draw close scrutiny. Tamil Nadu is a large industrial and manufacturing state, so the new government's stance on investment policy, fiscal management, and welfare spending will matter quickly for business conditions in the state.
The sworn-in ceremony at 11 AM Saturday is the next confirmed event to watch.

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.