- The Act amends the Income-tax Act, 2025, the Finance Act, 2026, and the Payment and Settlement Systems Act, 2007.
- It provides tax relief to certain foreign investors earning income from Indian Government Securities.
- It also eases some conditions for eligible foreign investment funds using Indian fund managers.
- The amendment to the Payment and Settlement Systems Act gives the Central Government greater flexibility to notify electronic payment modes covered under the zero-MDR framework.
- The government clarified that UPI consumer and person-to-person transactions will continue to remain free.
- The changes are aimed at supporting foreign investment while creating a more flexible regulatory framework for India's growing digital payments ecosystem.
Question:
Q1. Which Act was amended in 2026 to give the Central Government greater flexibility in regulating the zero-MDR framework for electronic payments?a) Reserve Bank of India Act, 1934
b) Banking Regulation Act, 1949
c) Payment and Settlement Systems Act, 2007
d) Information Technology Act, 2000
Answer: c) The Payment and Settlement Systems Act, 2007 was amended to allow the Central Government greater flexibility in notifying electronic payment modes covered under the zero-MDR framework.
