Finance Minister Nirmala Sitharaman has rejected as “absolutely baseless” allegations by the Opposition that the decision to levy a 0.4% Merchant Discount Rate (MDR) on specified UPI transactions above ₹2,000 was taken under external pressure, saying it was a professional decision by the payment ecosystem.

Talking to PTI, Ms. Sitharaman said the decision was completely professional, and it was taken jointly by the National Payments Corporation of India (NPCI), payment banks and merchant banks, and not imposed by the government.

She rubbished the Opposition’s allegations that the government had yielded to foreign pressure, saying the MDR was not a tax and would not accrue to the government.

“Absolutely baseless. And I totally deny it,” she said when asked about Opposition allegations that the decision on Unified Payments Interface (UPI) MDR was taken under external pressure, particularly from the U.S..

The Finance Minister said the Opposition was “searching for issues” and making allegations without fully understanding the matter.

Also dismissing criticism by Opposition parties, including the Congress, that it is a tax on consumers, Ms. Sitharaman said, “This is not a tax, this is not a cess, this is not even a surcharge. And the collection is not coming to the Consolidated Fund of India.”

The collected amount will be shared among banks and other entities in the UPI ecosystem. Of the MDR collected, 40% will go to customers’ banks, 30% to payment gateways, 20% to the UPI app and the remaining 10% to the sponsoring bank of the UPI app.

From October 15, a 0.4% MDR will apply to person-to-merchant UPI payments above ₹2,000. The charge will be paid by merchants, not consumers, and will be capped at ₹300 for transactions of ₹75,000 or more. Payments between individuals, as well as the vast majority of everyday merchant payments, will remain free.

Essential services, such as railways, telecom, fuel, and insurance, will attract a flat ₹5 fee per transaction above ₹2,000. Capital markets transactions (mutual funds, stockbroking) get a lower 0.02% rate, also capped at ₹300.

Small merchants collecting up to ₹1 lakh a month via UPI QR codes remain fully exempt from any new charge and shield about 96% of all merchant transactions.

The NPCI, which operates the UPI platform, on September 15, issued a circular providing for MDR on certain UPI transactions, with the move aimed at creating a sustainable revenue framework for the digital payments ecosystem.

A dedicated fund for promoting the use of UPI by small merchants will be set up, with a contribution of 5% of total MDR collections. This initiative will expand UPI acceptance, encourage sustained usage, and accelerate the inclusion of small businesses in India’s digital payments ecosystem.

Union Finance Minister Nirmala Sitharaman on Thursday (September 17, 2026) met her Nepalese counterpart Swarnim Wagle in New Delhi and discussed the impact of the recent flash floods in Nepal and the country’s priorities for reconstruction and rehabilitation.

“The two ministers discussed the impact of the floods and Nepal’s priorities for reconstruction and rehabilitation. FM Smt. @nsitharaman conveyed her condolences on the loss of lives in the recent floods in Nepal, and conveyed India’s continued support for Nepal’s recovery and rebuilding efforts,” the Finance Ministry said in a post on X.

The duo also discussed measures to strengthen bilateral economic ties and initiatives to enhance connectivity for deepening trade, investments and people-to-people exchanges.

“Both sides emphasised the importance of further strengthening the trade and economic partnership between India and Nepal,” the Ministry said.

Mr. Wagle is on his first official visit to India since assuming office as Nepal’s Finance Minister.

Foreign Secretary and the Secretary of the Department of Economic Affairs also joined the meeting.

The discussions come against the backdrop of India’s continued engagement with Nepal on economic cooperation, connectivity and development assistance.

Finance Minister Nirmala Sitharaman arrived in the U.S. city of Asheville in North Carolina for the G-20 finance ministerial meeting, which will focus on global growth against the backdrop of conflicts in West Asia and Europe.

Ms. Sitharaman is currently on a six-day visit to the U.S. running from August 29 to September 2, as part of a broader nine-day tour that began in Canada.

She was received by India’s Ambassador to the U.S. Vinay Mohan Kwatra at Greenville-Spartanburg International Airport in South Carolina on Sunday (August 30, 2026).

The Minister arrived at Asheville, about 760 km from Washington, from Chicago, where she participated in a roundtable conference with prominent investors and engaged with leading CEOs, presidents and senior representatives of the private sector.

U.S. Treasury Secretary Scott Bessent is hosting the G-20 Finance Ministers and central bank governors meeting in Asheville, a city nestled in the Blue Ridge Mountains, on Monday and Tuesday.

“Just as President Donald Trump is reviving American economic growth and making it the centrepiece of this Administration’s agenda, we are taking the same approach and prioritising growth as the host of this year’s G20 Finance Track,” Mr. Bessent said.

Mr. Bessent, who reached Asheville along with Federal Reserve Chairman Kevin Warsh, said in a social media post that the U.S. looked forward to convening policymakers and private sector leaders from around the globe to emphasise that stronger growth is “not only possible, but necessary”.

On the sidelines of the G-20 meetings, Sitharaman on Sunday met William Brown, Chairman and CEO of 3M, an American multinational conglomerate operating in the fields of industry, worker safety, and consumer goods.

“The discussion focused on deepening 3M’s engagement with India, as the country moves beyond being a large consumer market to an increasingly important platform for advanced manufacturing, technology and innovation,” the Finance Ministry said.

Ms. Sitharaman and Mr. Brown also discussed issues related to data security and optimal engagement of the Indian talent pool in domestic enterprises, it said.

With 3M’s capabilities, there is considerable scope to deepen localisation, R&D and technology development in India, particularly by leveraging Indian talent and manufacturing capabilities through regional innovation to serve both the domestic market and wider global and Asia-Pacific supply chains, Ms. Sitharaman said.

The Finance Minister acknowledged 3M’s consistent confidence in India and suggested further investment in R&D, advanced manufacturing and local supply-chain development.

Mr. Brown appreciated the availability of a deep talent pool in India and noted that there are many opportunities present for development of technology, as well as local markets.

He also acknowledged the support of the Government of India as part of the deeper reforms.

Eschewing big-ticket announcements, Finance Minister Nirmala Sitharaman on Sunday (February 1, 2026) resorted to a series of customs duty exemptions in the Union Budget to encourage domestic manufacturers of clean-energy components, including lithium-ion batteries and solar cells.

The basic customs duty on sodium antimonate, used in the manufacture of solar glass, has been cut from 7.5% to 0. “Specified” capital goods required for manufacturing lithium-ion cells for Battery Energy Storage System (BESS) have also been exempted from duty, along with several components used in the manufacture of nuclear power projects, including controller and protector absorber rods.

Union Budget 2026 LIVE

Last year, Parliament passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, which, among other things, incentivises private companies to invest and operate nuclear power plants in India. The Centre had also announced a ₹20,000-crore Nuclear Energy Mission to develop at least five indigenously designed and operational Small Modular Reactors by 2033.

Despite the policy push, the overall budgetary allocation for the Department of Atomic Energy has risen to ₹38,422 crore or about 2% higher than the previous year. Within this, the allocation for atomic energy research has increased by nearly 8% to ₹10,000 crore.

The Ministry of New and Renewable Energy, however, saw a sharper rise in allocation to nearly ₹32,914 crore from ₹26,549 crore in the previous year. As in last year’s budget, the most significant component of this year’s outlay is the Pradhan Mantri Surya Ghar Muft Bijli Yojana, which aims to solar-electrify one crore households by 2026-27. As of December ‘25, about 24 lakh households have benefitted under the scheme. The Budget has earmaked ₹22,000 crore for the scheme this year, up from ₹20,000 crore last year.

Union Budget 2026-27 documents

While India already operates Production Linked Incentive schemes to boost advanced-chemistry batteries and solar-cell manufacturing, domestic companies have been facing considerable challenges in accessing critical raw materials and skilled technicians, as well as in scaling up production.

“With a significant increase in allocation for the New and Renewable Energy sector, the Budget reinforces India’s commitment to sustainability, energy security and inclusive growth,” Renewable Energy Minister Pralhad Joshi said in a post on X. “With measures like duty exemptions for capital goods for lithium-ion cell manufacturing or for inputs used in solar glass production, the Budget frames India’s energy transition within a broader push for industrial competitiveness and resilient supply chains, supporting domestic production of critical inputs and access to key minerals,” Centre for Science and Environment (CSE) deputy programme manager Trishant Dev said.

Finance Minister Nirmala Sitharaman on Monday (August 17, 2026) said the government would soon constitute a high-level panel on ‘Banking for Viksit Bharat’.

In this year’s Budget, the Finance Minister had proposed a high-level committee on ‘Banking for Viksit Bharat’, to comprehensively review the sector and align it with India’s next phase of growth.

Addressing the two-day PSB Confluence, Ms. Sitharaman said, “We expect the announcement of the high-powered committee to look into the banking sector. Soon the committee will be announced.” She said the committee would give its thoughts and recommendations to the government.

“I propose setting up a ‘High Level Committee on Banking for Viksit Bharat’ to comprehensively review the sector and align it with India’s next phase of growth, while safeguarding financial stability, inclusion and consumer protection,” she had said in the Budget speech on February 1, 2026.

State-owned Life Insurance Corporation of India (LIC) on Wednesday (July 29, 2026) paid ₹12,207.25 crore dividend to the Centre.

CEO and MD R. Doraiswamy presented the dividend cheque, for ₹12,207.25 crore, to Union Minister of Finance and Corporate Affairs Nirmala Sitharaman as the government of India’s share of dividend, LIC said.

The shareholders had given their approval at the annual general meeting on July 27. LIC said it is completing 70 years and as on March 31, 2026 the asset base stood at ₹59.03 lakh crore. The corporation continues to be the market leader in the Indian life insurance market, the insurer said in a release.

Secretary to Centre’s Department of Financial Services Sanjay Lohiya along with the LIC managing directors Ratnakar Patnaik and R. Chander and ZM (I/C) of Northern Zone N. S. Raghava were present.

Union Finance Minister Nirmala Sitharaman on Thursday (June 25, 2026) emphasised that State governments must channel their borrowed funds into long-term capital expenditure, such as schools and hospitals, rather than relying heavily on revenue expenditure like cash distributions when financial resources are tight.

Addressing the media, Ms. Sitharaman underscored that taking loans to create public infrastructure yields a positive economic impact and generates employment for the next 50 to 60 years.

“Borrowing is not the issue, but what you do with the borrowed money matters. Are you creating assets? Is it bringing education, industries, or increasing employment? That should be the focus,” she said, noting that states are permitted to borrow up to 3% of their Gross State Domestic Product (GSDP).

Ms. Sitharaman, who is on a two-day visit to Tamil Nadu and Puducherry, attended Maha Kumbabhishekam of Sri Upanishad Brahmendra Mutt in Kancheepuram on Thursday (June 25).

Later in the day, she is scheduled to travel to Puducherry to inaugurate a renovated colonial-era lighthouse at the Central Goods and Services Tax (CGST) Commissionerate campus. Her heritage conservation itinerary also includes the inauguration of the restored 400-year-old Muzhiankulam (historic pond) at a government middle school in Puducherry on Friday (June 26).

Responding to queries regarding the absence of a medical college in Kancheepuram, the Finance Minister clarified that the Centre had already announced a policy three budgets ago to support the establishment of a medical college and hospital in every district.

Ms. Sitharaman urged the Tamil Nadu Government to submit a proposal. “We have told the states to plan for whichever district they want. The Tamil Nadu government should understand this and plan accordingly,” she added.

Commenting on the delayed development of Andhra Pradesh’s capital, Amaravati, the Minister pointed out that political shifts had stalled progress.

She noted that while the capital was being built continuously between 2014 and 2019, a subsequent change in the State government halted the project until 2024.

“In any such matter, all parties must come together and take a responsible decision to carry development forward,” Ms. Sitharaman said.

When asked for her reaction to the current Chief Minister C. Joseph Vijay narrating a ‘short story’ to criticise his predecessor during an ongoing State legislative Assembly session, Ms. Sitharaman defended the democratic process.

“If political criticism is not done in the Assembly, where else will it be done? Let the opposition answer and let the ruling party speak. There is nothing wrong with it,” she stated.