DPI Brief — August 24, 2026
UPI MDR Returns: PSS Amendment Act Gets Presidential Assent
Layer: Payments (L2)
The President has granted assent to the Taxation Laws (Amendment) Act, 2026 and the Payment and Settlement Systems (Amendment) Act, 2026 — the legislative vehicle that removes UPI's zero-MDR protection after nearly six years. Transactions above ₹2,000 will likely attract a 0.3% merchant discount rate, with fees split across issuing banks, acquiring banks, and payment service providers. The government has clarified that consumer-facing person-to-person (P2P) UPI payments remain free. The legal groundwork is now in place for RBI and NPCI to notify the operational framework. The Hans India first reported the MDR comeback details; Moneycontrol notes the fee structure will follow NPCI's existing interchange model for PPI-initiated payments (1.1% for prepaid instruments).
AgriStack National Conference: State Pushback on One-Size-Fits-All Design
Layer: Sectoral DPI (L5)
A national conference on AgriStack under the Digital Agriculture Mission was held in New Delhi on August 22, chaired by Union Agriculture Minister Shivraj Singh Chouhan. While the Centre pushed adoption of Farmer ID and AgriStack integration, states from the Northeast and Assam raised structural concerns. Nagaland's Agriculture Advisor Mhathung Yanthan flagged that the state's terrain, traditional landholding systems, shifting cultivation, and absence of comprehensive land records make the standardised AgriStack model a poor fit. He called for NE-specific provisions. Assam's Agriculture Minister Pijush Hazarika sought 100% subsidy on certified pulse seeds and demanded small tea growers with Farmer IDs be brought under PM-KISAN. MorungExpress | Sentinel Assam
ONDC Crosses 90 Lakh Monthly Transactions; Flipkart Food on the Open Network
Layer: Commerce (L4)
The latest PIB factsheet confirms ONDC has crossed 20 crore registered buyers, 5 lakh sellers, and nearly 90 lakh monthly transactions as of June 2026, with presence in 1,000 cities. Integration with eSaras and Indiahandmade has expanded market access for SHGs and artisans across 11+ buyer apps. Separately, Flipkart is reportedly preparing to roll out food delivery offerings integrated with ONDC — a significant move that could bring the open network into direct competition with established food delivery platforms. PIB
Kerala Launches Integrated Digital System for 2,000 Onam Markets
Layer: Sectoral DPI (L5) / Governance (L6)
Kerala's Agriculture department has launched an integrated digital mechanism across 2,000 special Onam markets, enabling end-to-end tracking from farmer procurement to consumer sales. Vegetables and fruits are procured at 10% above open-market rates and sold at a 30% discount, with the digital system ensuring prompt payments to farmers. The markets are operated by Krishi Bhavans (1,074), Horticorp (766), and VFPCK (160), with ₹10.74 crore sanctioned under the market intervention scheme. This is a practical demonstration of DPI principles — digital payments, traceability, and data-driven price stabilisation — applied at state scale. The Hindu
GeM Crosses ₹18.4 Lakh Crore Cumulative GMV
Layer: Commerce (L4)
Government e-Marketplace (GeM) has achieved a cumulative Gross Merchandise Value of ₹18.4 lakh crore, including crossing the ₹5 lakh crore milestone in a single year, according to GeM CEO. The platform continues to expand its procurement base, with Union Bank of India recently issuing an RFP for secure colocation data centre infrastructure through GeM (Bid Number GEM/2026/B/7919630). However, a Times of India investigation found significant price disparities on the platform — a Sambhajinagar government hospital paid ₹249 per nebulizer mask versus ₹70 on GeM for the same product on the same day, raising questions about enforcement of the platform's price-discovery promise. News on Air | Times of India
Covering L1–L7 of India's Digital Public Infrastructure stack. Sources: PIB, The Hindu, MorungExpress, The Hans India, Sentinel Assam, Times of India.