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GoI Policy Tracker

UPI stays free; ₹2,000 MDR cap for merchants

September 16, 2026 6 mins read Firehose Gupta

EXECUTIVE SUMMARY:

UPI stays free for person-to-person payments
Government amended the payments law and notified that UPI transactions up to ₹2,000 will have zero Merchant Discount Rate (MDR) for person-to-merchant payments, while person-to-person (P2P) stays free regardless of amount. This keeps most everyday digital payments cost-free for users and small merchants, while introducing limited charges only for higher-value merchant payments.

CCPA fines Rapido ₹10 lakh over dark-pattern tipping
The consumer regulator penalised Rapido for misleading “tipping” prompts and interface designs that pressured riders to pay more before a ride was confirmed. The move signals tighter enforcement against manipulative pricing practices across ride-hailing apps.

Government expands legal metrology test-centre network
The consumer affairs department is broadening the network of Government Approved Test Centres (GATCs) after changes to the rules governing verification of weighing and measuring instruments. With more categories covered and more states aligning their rules, businesses may get faster, more local verification—while consumer protection around fair measurement strengthens.

Railways adds five cargo terminals in Gujarat
The railways ministry dedicated four and laid the foundation stone for one new Gati Shakti Cargo Terminal (GCT) in Gujarat to boost freight capacity and reduce port congestion. The terminals are expected to help regional industries move goods faster and cheaper, including for salt shipments using new lightweight containers.

Jharkhand dam safety push under Dam Safety Act
The National Dam Safety Authority reviewed how Jharkhand is implementing the Dam Safety Act, focusing on completing dam safety evaluations, emergency plans, and maintenance manuals. It also pushed for stronger state-level structures and dedicated funding for dam safety, with specific directions for certain dams.

India reports strong export growth in April–August
India’s total exports (goods and services) for April–August 2026-27 are estimated at US$ 399.27 billion, up 15.55% from the same period last year. The data points to faster growth in electronics, petroleum products and engineering goods, which matters for exporters and supply chains.

Six states sign Kishau water project agreement
Uttarakhand, Himachal Pradesh, Uttar Pradesh, Haryana, Rajasthan and Delhi signed the Kishau Project agreement, with India covering about 90% of the cost. The project includes a large dam on the Tons River and is expected to irrigate land and generate hydropower—important for water sharing and regional agriculture planning.

DETAILED NOTES:

UPI stays free for person-to-person payments

What happened:
* The government amended the Payment and Settlement Systems (PSS) Act to allow rules that keep certain electronic payment modes free of charges.
* A notification set zero MDR for UPI transactions up to ₹2,000, and a separate NPCI circular lays out how charges will work for different transaction types.
* Person-to-person (P2P) UPI payments remain free with no charges, while person-to-merchant (P2M) payments above ₹2,000 attract a nominal MDR (0.4%), with caps on very high values.
* A fund will be created using 5% of MDR collections to promote UPI use by small merchants.

Why it matters:
* Most everyday UPI use—especially small payments between people—stays free, protecting consumers from new costs.
* Merchant charges are limited and capped, which should reduce the risk of higher payment costs for small businesses.


CCPA fines Rapido ₹10 lakh over dark-pattern tipping

What happened:
* The Central Consumer Protection Authority (CCPA) imposed a ₹10 lakh penalty on Rapido for misleading prompts and “dark patterns” related to pre-ride tipping.
* CCPA said Rapido’s app used pressure tactics like “higher chance of getting a ride” if riders pay more during booking.
* It also flagged a colour-coded pricing slider that nudged users toward higher prices.
* The regulator said tipping should not be presented as a condition for getting a ride, and it referenced rules that restrict tipping features to after the ride.

Why it matters:
* Ride-hailing platforms face stronger scrutiny on how they present pricing and “tipping” during booking.
* Consumers can expect fewer manipulative prompts, and companies may need to redesign app flows to comply.


Government expands legal metrology test-centre network

What happened:
* After amendments to the Legal Metrology (Government Approved Test Centre) Rules, 2013, the scope of test centres (GATCs) has been broadened to cover 23 categories of instruments.
* The department invited fresh applications for recognition of new GATCs; 51 are already recognised and more are in the pipeline.
* Several states have notified their own GATC rules to align with the amended central framework.

Why it matters:
* Faster access to verification can reduce delays for companies that need measurement checks for products and equipment.
* It also strengthens consumer protection by improving the enforcement ecosystem around correct weights and measures.


Railways adds five cargo terminals in Gujarat

What happened:
* The railways ministry dedicated four Gati Shakti Cargo Terminals (GCTs) in Gujarat and laid the foundation stone for one more.
* The terminals are meant to expand rail freight handling, reduce congestion at ports, and improve links between Gujarat’s ports and northern markets.
* The ministry also highlighted a new lightweight stainless-steel container design for easier salt loading/unloading and flagged off a salt freight train.

Why it matters:
* Better freight terminals can lower logistics costs and improve delivery reliability for regional industries.
* The salt-focused upgrade supports a key commodity supply chain from Gujarat to other parts of India.


Jharkhand dam safety push under Dam Safety Act

What happened:
* The National Dam Safety Authority reviewed Jharkhand’s progress on implementing the Dam Safety Act, 2021.
* It pressed for timely completion of dam safety evaluations (including CDSE reports), emergency action plans, and operation & maintenance manuals.
* The authority asked Jharkhand to strengthen its dam safety organisation structure, including reconstituting the state dam safety organisation as a dedicated body and ensuring a separate budget head.
* It also directed specific actions for the Nalkari Dam, including setting up a dam safety unit and conducting inspections before and after monsoon.

Why it matters:
* Stronger dam safety planning reduces the risk of disasters and improves preparedness for downstream communities.
* Clear timelines and funding signals can affect how quickly dam owners and state departments complete required safety work.


India reports strong export growth in April–August

What happened:
* India’s total exports (merchandise + services) for April–August 2026-27 are estimated at US$ 399.27 billion, up 15.55% year-on-year.
* Merchandise exports rose to US$ 215.91 billion (up 17.85%), with non-petroleum exports also growing.
* The report highlights sharp growth in electronics, petroleum products and engineering goods.

Why it matters:
* Export momentum supports jobs and revenues across manufacturing and logistics.
* Stronger categories like electronics and engineering can attract more investment and contract activity in related supply chains.


Six states sign Kishau water project agreement

What happened:
* Chief ministers of six states signed the Kishau Project agreement in the presence of senior central ministers.
* The project is declared a national project, with India bearing about 90% of the financial burden and partner states about 10%.
* The plan includes a 232.6-metre dam on the Tons River, with irrigation benefits and hydropower generation.

Why it matters:
* Resolving a long-running water dispute can stabilise planning for agriculture and drinking water in the Yamuna basin.
* The cost-sharing and national-project status reduce uncertainty for states and can speed up execution.