Rediff Live Updates: West Bengal Bypoll Turmoil and UPI MDR Fee Controversy

Indian users searching for rediff are currently accessing live commentary on a wave of political instability in West Bengal's Nandigram and Rejinagar by-polls. Alongside these regional updates, there is a growing national conversation regarding changes to the Unified Payments Interface (UPI) fee structure, specifically the Merchant Discount Rate (MDR), which could end the era of free high-value digital payments for merchants.

Political Volatility in Nandigram and Rejinagar

The by-polls in West Bengal have been marked by sudden withdrawals and strategic shifts. In Nandigram, Sanchita Pradhan Dey of the Trinamool Congress (TMC) withdrew her nomination on September 19, 2026. This led Chief Minister Mamata Banerjee to offer her support to the Congress nominee, Milan Pradhan. However, shortly after this alliance became public, West Bengal Police arrested Pradhan on charges related to the 2007 anti-land acquisition protests [3].

Similar drama unfolded in Rejinagar on September 20, 2026. TMC candidate Rabiul Alam Chowdhury initially quit the race, citing threats and pressure. Within two hours, he reversed his decision after receiving police protection assurances and a direct call from Mamata Banerjee [1]. Adding to the complexity, the Election Commission (EC) ratified a new identity for the loyalist TMC faction, naming them the "Mamata All-India Trinamool Congress" with a footballer as their official symbol [1].

The UPI MDR Fee Debate

The political friction has extended to financial policy. Congress leader Pawan Khera has publicly criticized the Centre for a proposed 0.4% Merchant Discount Rate (MDR) on UPI merchant transactions that exceed ₹2,000. According to Khera, this framework is set to begin on October 15, 2026, and may include flat fees for certain sectors like fuel [3].

This proposed change is causing anxiety among small business owners. In Kolkata, some restaurant operators are already considering raising menu prices to cover the expected increase in operating costs associated with these npci (National Payments Corporation of India) and rbi regulated payment shifts [1]. This impact would be felt across major payment apps like paytm and phonepe.

UPI MDR Fee Summary (Based on Congress Claims)

Detail	Claimed Provision
Proposed MDR Fee	0.4%
Transaction Threshold	Above ₹2,000
Proposed Effective Date	October 15, 2026
Potential Impact	Increased costs for merchants; possible price hikes for consumers