Current Affairs

Government bars fees on UPI payments up to Rs 2,000

2026-09-16 - ABikram Mondal

Government moves to protect small UPI users from fees

The Ministry of Finance issued a notification on Tuesday clarifying that banks and payment service providers cannot levy any additional charges on UPI transactions up to Rs 2,000. The exemption extends to RuPay debit card payments as well, according to reports in The Indian Express.

This step follows earlier concerns raised after a notification on merchant fees for higher value transfers. Officials described the move as a direct response to public feedback on everyday digital payments that form the bulk of daily use.

Congress leaders, including Rahul Gandhi, had criticised the government for what they called a quiet push toward fees that would burden common users. They linked it to external pressures, though the ministry has not confirmed any such connection in its statements.

The clarification keeps person to person transfers fully exempt while applying the 0.4 per cent levy only to person to merchant transactions above the threshold from mid October onward, per details shared by multiple outlets.

Payment companies welcomed the clarity because it removes uncertainty for millions of small merchants and consumers who rely on quick transfers for groceries, transport and bills.

Exports record strong growth in August

Government data released on Tuesday showed India's exports rising 26.12 per cent to 43.81 billion US dollars in August. The trade deficit narrowed to 26.86 billion US dollars in the same period.

Officials attributed the surge to better performance in key sectors such as engineering goods and pharmaceuticals. The numbers come from the commerce ministry and were reported widely by business desks.

Analysts noted that the improvement helped offset some pressure from global demand fluctuations. Monthly figures like these provide a snapshot rather than a full quarterly trend.

Imports also grew but at a slower pace, contributing to the narrower deficit. The data does not yet include revisions that sometimes follow initial releases.

Exporters groups said sustained momentum would depend on stable global prices and continued policy support for logistics.

Tamil Nadu secures major investment commitments

The Tamil Nadu government signed memorandums of understanding worth more than Rs 15,300 crore during Chief Minister C Joseph Vijay's visit to the United Kingdom. The deals are expected to create over 10,000 jobs, officials stated on Tuesday.

Leading global firms participated in the agreements focused on manufacturing and technology sectors. State representatives described the outcome as a direct result of targeted outreach.

Similar investment rounds in previous years have translated into actual projects at varying rates, though specific timelines for these MoUs remain under discussion.

Employment projections assume full rollout and local hiring priorities that the state government has emphasised in its policy documents.

Business chambers in Chennai called the announcements positive for the state's industrial corridor plans.

Delhi announces hostels for 10,000 students

Chief Minister Rekha Gupta said on Tuesday that the Delhi government will build fully equipped hostels for 10,000 students studying in city colleges and universities. The facilities aim to address safety and affordability concerns highlighted after recent incidents.

Details on locations and construction timelines are still being finalised by the education department. Budget allocation has not been specified in the initial announcement.

Student organisations welcomed the plan but asked for transparent selection criteria and maintenance standards once the hostels open.

The move comes alongside ongoing reviews of private accommodation options following the Satya Niketan building incident earlier in the month, though the new facilities are positioned as long term additions.

University administrators noted that secure housing could improve attendance and focus for outstation students.

Police to question Google over fake accounts

Indian police will question Google after dismantling a network that created more than 500,000 fake Gmail accounts used for hoax bomb threats, a senior official told Reuters on Tuesday.

The accounts targeted government offices across several states. Investigators are examining whether the platform's verification processes need strengthening.

Google has not issued a public response yet on the specific queries it expects to receive. Similar cases in the past have led to increased reporting tools rather than immediate policy shifts.

Cyber crime units said the network operated across multiple countries, complicating initial tracing efforts.

The episode underscores ongoing challenges in curbing misuse of free email services for criminal intimidation.

Other developments include semiconductor talks and rain forecast

Prime Minister Narendra Modi is scheduled to meet global semiconductor industry leaders in New Delhi on Wednesday ahead of SEMICON India 2026. The roundtable focuses on expanding domestic manufacturing capacity.

The India Meteorological Department forecast isolated heavy rainfall for Delhi, Haryana, Punjab and parts of the east and south on Wednesday. Farmers in affected regions have been advised to monitor updates.

Chief Election Commissioner Gyanesh Kumar begins an official visit to Bhutan on the same day, with meetings planned alongside senior officials there.

Trade exhibitions on media and tools equipment open at Pragati Maidan, drawing participants from across the country for several days.

These events run parallel to routine parliamentary and state level activities without major disruptions reported so far.

The short version. The finance ministry has confirmed no extra charges on UPI transactions up to Rs 2,000 while exports posted a 26 per cent rise in August.

Sources

Reported from the sources above on 2026-09-16. Figures are as published at the time of writing. If something here has moved on, the linked source is the one to trust.

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