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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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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.

India News

PM Modi thanks voters of West Bengal, hails Syama Prasad Mookerjee dream

PM Narendra Modi welcomes BJP crossing majority in West Bengal, calling it a historic mandate by the people.

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PM Narendra Modi

Prime Minister Narendra Modi credited the BJP’s victory in the elections to the West Bengal Assembly elections 2026 to the people of the state and each and every party worker who has suffered in promoting the party and disseminating its message over the last 30-odd years. He thanked the people of Assam for re-electing the party.

Addressing party workers at the BJP headquarters, Modi invoked Jana Sangh found Syama Prasad Mookerjee, who worked for the purpose of a united Bengal, and Sri Aurobindo and said their spirits will be at peace at last. Paying paeans to the vision of Tagore, he recounted that the Nobel laureate had wished for a country where one can hold one’s head high without fear.
The PM said the people of Bengal have chosen the governance model of the party. He promised jobs for the youth, increased safety for women. He said the first cabinet meeting will implement Ayushman Bharat in the state. In the same breath, he promised to act against infiltrators decisively.
Pointing to the violence-less election this time, he said not one citizen has been hurt or killed while it many have died in previous polls.
He appealed to the workers of other parties to end the cycle of violence that had plagued the state for all this time and instead serve Bengal and its people.
The problems posed by the war in Iran found place in the PM’s speech. He noted that the whole country is at a disadvantage but people are soldiering on to achieve Viksit Bharat.
Referring to the importance of nari shakti in the development of India, he took potshots at the Congress and other opposition parties for opposing the women’s reservation bill. Modi reminded the audience that he had warned the Congress, Trinamool Congress and DMK for opposing it and they have been taught a lesson. Referring to Kerala, he said the BJP will see gains in the future. He mocked the Communist Party of India (Marxist) for not having any government left in the country after the loss of the Pinarayi Vijayan-led Left Democratic Front in Kerala.
Attacking the Congress, he said it has become the hub of urban naxals and said the people have thrown out communist thought in the country. The Congress has no understanding of the aspirations of the people. The BJP will continue to stand shoulder to shoulder with the people of Tamil Nadu and Kerala as well, he said.

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BJP crosses majority in West Bengal, PM Narendra Modi says lotus blooms in first reaction

PM Modi hails BJP’s majority in West Bengal, calling it a historic mandate and thanking voters across the state.

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Prime Minister Narendra Modi on Monday welcomed the Bharatiya Janata Party’s strong performance in the West Bengal Assembly elections 2026, saying the “lotus has bloomed” in the state as the party crossed the majority mark in early results.

In a post on X, Modi thanked the people of West Bengal and described the outcome as a reflection of public trust. He said he bows to every voter for their support, adding that the mandate reflects faith in governance and development-focused politics.

The BJP’s surge in the 294-seat assembly marks a significant political shift in the state, where the party has not previously formed a government. The results indicate a major challenge to the long-standing dominance of the Trinamool Congress.

The election is part of a broader round of state polls across India, where the BJP has shown strong momentum. The party’s performance in West Bengal is being seen as one of the most significant developments in this election cycle.

With counting trends favouring the BJP, focus now turns to final results and the formation of the new government in the state.

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Stalin loses Kolathur seat in Tamil Nadu results 2026 as TVK’s VS Babu scores upset

Media reports suggest MK Stalin has lost his Kolathur stronghold to TVK’s VS Babu in Tamil Nadu election results 2026.

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MK Stalin

In a significant political development in the Tamil Nadu Assembly election results 2026, Chief Minister M. K. Stalin is reported to have lost the Kolathur constituency, according to media reports based on counting data.

As per these reports, Stalin was defeated by V. S. Babu of Tamilaga Vettri Kazhagam (TVK), marking a notable upset in a seat long regarded as a stronghold of the DMK leader.

Kolathur, located in Chennai, has been closely associated with Stalin for years, making the reported outcome particularly significant in the current election cycle. Earlier counting trends had indicated a tight contest, with Stalin trailing before the result was reported.

The development comes amid a strong showing by actor-turned-politician Vijay’s party, Tamilaga Vettri Kazhagam, which has performed competitively across several constituencies in the state, according to media reports.

While the Dravida Munnetra Kazhagam (DMK) has been leading in multiple seats, the reported loss in Kolathur is being viewed as a key moment in the party’s overall performance.

Final results across Tamil Nadu are still being compiled as counting continues.

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