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No plan to impose MDR on UPI transactions, confirms Finance Ministry

The Finance Ministry has dismissed speculation about imposing a Merchant Discount Rate on UPI transactions, calling such claims false and misleading.

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UPI

In a clear statement issued on Wednesday, the Ministry of Finance dismissed recent reports claiming that the government was planning to levy a Merchant Discount Rate (MDR) on large-value Unified Payments Interface (UPI) transactions. The ministry termed such claims “false, baseless, and misleading”.

No fee on UPI transactions, says Centre

The official clarification was made in response to several online reports suggesting a potential move to introduce MDR charges on higher-ticket UPI transactions. The Finance Ministry warned that such speculation only leads to “needless uncertainty, fear, and suspicion among citizens,” adding that the government remains fully committed to promoting the use of UPI for digital payments.

MDR is a fee that banks charge merchants to process payment transactions in real-time. Traditionally applicable on card payments, it used to be about 1% of the transaction value. However, in 2020, the government scrapped MDR fees on UPI and RuPay transactions to promote the digital ecosystem.

UPI records significant growth in May

Backing its success, UPI continues to dominate India’s digital payments landscape. In May 2025, UPI handled 18.68 billion transactions valued at ₹25.14 lakh crore — an increase from ₹23.95 lakh crore in April, according to the National Payments Corporation of India (NPCI).

This marks a 33% year-on-year jump from the 14.03 billion transactions recorded in May 2024. The average daily transaction amount during May was ₹81,106 crore, with the daily transaction volume hitting 602 million.

UPI’s contribution to India’s digital economy

The RBI’s annual report highlighted that UPI facilitated 185.8 billion transactions in FY 2024-25, reflecting a 41% rise over the previous year. In value terms, the total reached ₹261 lakh crore, up from ₹200 lakh crore.

UPI now accounts for 83.7% of India’s total digital transaction volume, up from 79.7% in FY24. The RBI also emphasized India’s global leadership in real-time payments, with UPI contributing to 48.5% of global real-time payment transactions.

Across all platforms — including card networks and prepaid instruments — total digital payments in India surged by 35% to 221.9 billion transactions in FY25. In terms of value, this marked an 18% rise to ₹2,862 lakh crore.

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Lt Gen Dhiraj Seth appointed next Army chief, to take charge on June 30

The government has appointed Lt Gen Dhiraj Seth, currently the Vice Chief of Army Staff, as the next Army chief. He will succeed General Upendra Dwivedi on June 30.

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The Centre has appointed Lieutenant General Dhiraj Seth as the next Chief of the Army Staff (COAS), paving the way for a leadership transition in the Indian Army later this month. Lt Gen Seth, who currently serves as the Vice Chief of the Army Staff, will succeed General Upendra Dwivedi upon the latter’s retirement on June 30, 2026.

The appointment was announced on Saturday, with the government confirming that Lt Gen Seth will assume office from the afternoon of June 30. He will take over command after General Dwivedi completes his tenure as the Army’s 30th chief.

Veteran Armoured Corps officer

An officer of the Armoured Corps, Lt Gen Seth was commissioned into the Indian Army in December 1986 after graduating from the National Defence Academy. Over nearly four decades of service, he has held a range of operational, command, staff and strategic appointments across the Army.

Before becoming Vice Chief on April 1, 2026, he served in several senior leadership roles, including heading the Southern Command and South Western Command. He has also commanded formations such as the Delhi Area and the XXI Corps during his military career.

Leadership transition in the Army

Lt Gen Seth’s elevation comes as the Army prepares for a change of command at the highest level. His appointment follows his move to Army Headquarters as Vice Chief earlier this year, a role he assumed on April 1.

The Ministry of Defence said the incoming Army chief brings extensive experience from command, operational and strategic assignments across diverse military domains.

With the appointment, Lt Gen Seth is set to lead the Indian Army through the next phase of its modernisation and operational preparedness efforts after taking charge at the end of the month.

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IAF AN-32 aircraft crashes while landing at Assam’s Jorhat airbase, five personnel killed

Five Indian Air Force personnel were killed after an AN-32 transport aircraft crashed while landing at Jorhat Air Force Station in Assam. The IAF has ordered a court of inquiry into the accident.

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An Indian Air Force (IAF) AN-32 transport aircraft crashed while attempting to land at Jorhat Air Force Station in Assam on Saturday, resulting in the deaths of five Air Force personnel. The accident occurred during a routine sortie and triggered an emergency response at the airbase.

According to the IAF, the aircraft met with the accident during the landing phase at Jorhat. The force later confirmed the loss of five personnel and expressed condolences to their families. A court of inquiry has been ordered to determine the circumstances that led to the crash.

Court of inquiry ordered

The Indian Air Force said a formal investigation will examine the cause of the accident. Officials have not yet disclosed what may have led to the crash, and the inquiry is expected to review technical, operational and environmental factors.

Reports indicated that the co-pilot survived the accident and is undergoing medical treatment.

Personnel who lost their lives

The IAF identified the five personnel killed in the accident as:

  • Squadron Leader Prashant Singh
  • Flight Lieutenant Shubham Kumar
  • Sergeant Jitendra Sharma
  • Agniveervayu Khemaram Kumawat
  • Agniveervayu Danish Alam

The Air Force said it stands with the bereaved families during this difficult time.

AN-32’s role in the Air Force

The AN-32 is a twin-engine transport aircraft that has been a key part of the Indian Air Force’s logistics operations for decades. It is widely used to transport personnel, equipment and supplies, particularly in remote and high-altitude regions. India remains one of the largest operators of the aircraft type.

The crash comes months after a Sukhoi Su-30MKI fighter aircraft accident in Assam that claimed the lives of two IAF pilots.

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Delhi records coolest day of June so far as rain and thunderstorms bring relief from heat

Delhi recorded its coolest day of June after rain and thunderstorms caused a sharp drop in temperatures. IMD has forecast more showers and gusty winds before temperatures begin rising again.

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Delhi weather today

Delhi witnessed its coolest day of June so far after widespread rain and thunderstorm activity caused temperatures to drop significantly across the national capital. The change in weather provided much-needed relief from the intense summer heat that had gripped the region in recent weeks.

According to the India Meteorological Department (IMD), rain and thunderstorms over the past 24 hours brought a noticeable decline in both maximum and minimum temperatures. Official weather observations showed that Delhi’s maximum temperatures fell well below normal levels, while several areas experienced strong winds and rainfall.

More rain and thunderstorms likely

The IMD has forecast additional thunderstorms, light to moderate rain and gusty winds for Delhi and nearby areas through Saturday. A yellow alert remains in place, with weather conditions expected to stay unsettled before gradually improving.

Weather experts have attributed the recent change to the influence of a western disturbance and associated weather systems affecting northwestern India. While the disturbance is gradually moving away, its impact is expected to continue for a short period.

Temperatures may rise again next week

Meteorologists expect the pleasant conditions to last for another couple of days. After that, temperatures are likely to begin rising again as rainfall activity decreases. The IMD’s latest forecast also indicates a gradual increase in temperatures by the middle of next week.

Recent weather systems have brought relief not only to Delhi but also to parts of Uttar Pradesh, Rajasthan and other northern states, where thunderstorms and rain have helped ease heatwave conditions.

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