The government will levy a 0.4% Merchant Discount Rate (MDR) on UPI payments to merchants above Rs 2,000, effective October 15. The finance ministry clarified the charge applies only to person-to-merchant transactions and will be capped at Rs 300 for payments of Rs 75,000 and above. Consumers will not be charged. Essential sectors like railways, telecom, insurance, fuel, and education fees will pay a flat Rs 5 per transaction instead. Payments below Rs 2,000, rural and semi-urban QR transactions remain fully exempt. Officials say only about 4% of merchant transactions will actually attract the new fee. (PC: X)

An IndiGo flight from Agartala to Delhi was diverted to Lucknow on Tuesday after a “smoke warning” was reported in the cargo area. Flight 6E6504 landed safely at Lucknow Airport at 6:29 pm. The flight was carrying 103 passengers and six crew members. Emergency teams were deployed after landing, and all passengers received assistance. No untoward incident was reported. IndiGo has not yet issued an official statement. The incident comes days after another IndiGo flight made an emergency landing in Ahmedabad after a note claiming there was a bomb was found onboard. The bomb threat was later investigated.  

The government has announced a new Merchant Discount Rate (MDR) framework for select UPI transactions, under which merchants will pay a fee on person-to-merchant (P2M) payments above Rs 2,000, while consumers will continue to use UPI free of charge. The new framework will take effect from October 15, 2026. Under the standard P2M structure, a 0.4% MDR will apply to UPI transactions above Rs 2,000. For transactions of Rs 75,000 and above, the MDR will be capped at Rs 300 per transaction. The charge will be paid by merchants to acquiring banks and cannot be passed on to customers. Thus, consumers will not bear the fee directly when making UPI payments. (PC: Getty Images)

A 0.4% Merchant Discount Rate (MDR) may be charged on UPI payments above ₹2,000 made to merchants, according to a new proposal. The move is aimed at helping banks and payment companies cover the cost of handling UPI transactions. The proposed charge would apply to merchant payments, while person-to-person transfers would remain free. The government has not yet taken a final decision on introducing the charge. UPI has become one of India’s most widely used payment methods, with millions of transactions made every day. The proposal could affect businesses that receive large-value payments through UPI.

Gurugram Police have arrested Kalyan Bainsla, the driver accused of ramming his car into woman biker Shivani Chauhan (Sia) on Golf Course Road, along with his cousin Lavnish Gurjar. Both were detained in Dausa, Rajasthan, on Tuesday, days after Sunday's incident went viral. CCTV footage showed Bainsla's white sedan swerving into Sia's Aprilia RS 457, throwing her off the bike. Police added an attempt-to-murder charge, carrying up to 10 years in prison. Bainsla had earlier claimed he didn't know the rider was a woman, a claim Sia has strongly disputed, alleging the attack was deliberate and premeditated. (PC: HT)

Pakistan has raised its bounty on Jaish-e-Mohammed chief Masood Azhar from PKR 50 lakh to PKR 70 lakh, listing him as a fugitive in its 2026 Red Book of most-wanted terrorists. India has dismissed the move as a "phoney announcement", calling it a smokescreen timed ahead of the FATF plenary in October to avoid the grey list. New Delhi says Indian intelligence assessments over the past six months show Azhar is actually hiding in Nawabshah, Sindh, contradicting Pakistan's long-standing claim that he fled to Afghanistan. Azhar remains wanted for the Parliament attack, 26/11, Pathankot and Pulwama bombings.

Three young men from western Uttar Pradesh, Himanshu Sharma, Shakti Punder and Ashu Saini, have gone missing in Russia, their families said, alleging they were coerced into fighting on the Ukraine frontline. The trio had travelled to Russia in 2025 on student visas for language courses and part-time work. Relatives say a panicked final call on July 30 suggested the men were being pushed toward the frontlines against their will, with passports allegedly confiscated. Over 30 Indians have reportedly died serving with the Russian military in the conflict so far. Families are now seeking urgent government intervention. (PC: X)

Gurugram Police on Tuesday arrested Kalyan Bainsla, the car driver accused of ramming his speeding Ciaz into a woman biker's Aprilia RS 457 on Golf Course Road, two days after the incident went viral. Bainsla was nabbed from Rajgarh in Rajasthan. The biker, identifying herself as Sia, alleged she was deliberately targeted and that Bainsla fled without checking on her after the crash. Following CCTV analysis, police added the charge of attempt to murder under Section 109 of the BNS, which carries up to 10 years' imprisonment, to the earlier FIR for rash driving and causing hurt. (PC: India Today)

The Finance Ministry has notified that banks and payment system providers cannot charge fees on UPI and RuPay debit card transactions up to ₹2,000. The notification, issued under Section 10A of the Payment and Settlement Systems Act, follows an amendment passed in Parliament's Monsoon Session. While small transactions remain fully protected, the rule opens the possibility of a Merchant Discount Rate (MDR) on select higher-value merchant transactions above ₹2,000. The NPCI's UPI Steering Committee is expected to finalise MDR rates soon, with industry estimates suggesting 25-30 basis points for larger businesses. Person-to-person UPI payments remain unaffected. (PC: NDTV)

Chaos erupted at Delhi's IGI Airport as passengers of two SpiceJet flights to Dubai staged protests after delays stretched beyond 24 hours. Flights SG 5111 and SG 5105 were both rescheduled multiple times, leaving travellers stranded without clarity on departure, food, or accommodation. Passengers alleged no airline staff were available to address their concerns, prompting airport officials to step in with food and rest arrangements. A heated exchange between a passenger and an official over video recording further fuelled tensions. SpiceJet attributed the delays to the grounding of an aircraft and said alternate flights were being arranged, apologising for the inconvenience caused. (PC: India Today)