Payments & UPI (Money & Banking).
Syllabus: UPSC Pre GS1: Economic & Social Development; Mains GS3
UPI for UPSC: NPCI, how a UPI payment works, zero MDR, UPI Lite, credit on UPI, international links, market share cap, fraud…
The Government clarified on 15 September 2026 that under the new UPI framework all person-to-person payments stay free, and so do merchant payments up to ₹2,000. A merchant discount rate (MDR) of 0.4 per cent applies only to merchant payments above ₹2,000, capped at ₹300. About 96 per cent of merchant transactions will not be affected.
UPSC angle: Prelims: MDR meaning; PSS Act 2007. · Mains: Who should pay for digital public infrastructure?
15 Sep 2026
On 9 September 2026 UIDAI launched an Aadhaar Face Authentication SDK and a testing Sandbox at the Global Fintech Fest 2026. The SDK puts face authentication inside a bank or fintech's own Android or iOS app, so users no longer need the separate FaceRD app. Face authentication, launched in 2021, has handled over 500 crore transactions.
UPSC angle: Prelims: UIDAI ministry and Act.
9 Sep 2026
On 30 August 2026 NPCI International Payments Ltd (NIPL) signed a commercial agreement with Uzbekistan's National Interbank Processing Centre, operator of the HUMO payment system. Indian travellers can now scan Uzbekistan's national QR code, UZQR, with UPI apps to pay merchants. It was announced during the Prime Minister's visit to Uzbekistan.
UPSC angle: Prelims: NIPL; UPI abroad.
31 Aug 2026
The Unified Payments Interface, launched on 25 August 2016 by NPCI under RBI oversight, completed ten years in August 2026. Yearly transactions rose from 1.78 crore in FY 2016-17 to over 24,162 crore in FY 2025-26, worth about ₹314 lakh crore. The IMF recognises UPI as the world's largest real-time payment system by volume.
UPSC angle: Prelims: NPCI; UPI features.
25 Aug 2026
On 14 August 2026 the Centre launched Central Bank Digital Currency-based Direct Benefit Transfer under PMGKAY in Chandigarh and Dadra and Nagar Haveli. The food subsidy now goes into each beneficiary's Digital Rupee wallet as purpose-bound tokens, usable only for foodgrains at empanelled shops. It follows pilots in Gujarat and Puducherry in February 2026.
UPSC angle: Prelims: e-rupee.
14 Aug 2026
On 8 August 2026 the Finance Ministry said UPI users will not pay any transaction charge and person-to-person transfers stay free. A Bill to amend Section 10A of the Payment and Settlement Systems Act, 2007 only enables a merchant charge (MDR). If one comes, it will be nominal, threshold-based and on a limited set of merchant payments.
UPSC angle: Prelims: MDR.
8 Aug 2026