Political showdown over 0.4% UPI fee as industry defends merchant levy

This special report examines escalating geopolitical tensions impacting global energy corridors, trade policies, and regional diplomacy. In the Red Sea, Houthi forces have seized the strategic Greater and Lesser Hanish islands near the Bab el Mandeb strait, threatening international shipping lanes and Saudi crude oil export routes. The maritime disruption coincides with drone attacks targeting Saudi Arabia's East-West pipeline, pushing Brent crude oil prices above 100 dollars per barrel and raising fears of wider supply shocks. Meanwhile, the US House of Representatives advanced the Lindsey Graham Sanctioning Russia and Iran Act of 2026, which proposes up to 100% tariffs on major purchasers of Russian energy, including India and China. In Germany, US CENTCOM convened a closed-door security conference with Israeli and Arab military commanders to coordinate responses to regional threats. The programme also highlights WHO leadership candidate Dr Hanan Balkhy discussing healthcare challenges in Gaza and introduces Germany's new Ambassador to India, Dr Philipp Ackermann's successor Dr Jasper Wyk.

Pakistan has summoned India's envoy in Islamabad to lodge a protest following a collision between Indian and Pakistani naval vessels. Pakistan claimed an Indian warship engaged in aggressive maneuvers during its biennial naval exercise Sea Spark 26, leading to contact between the ships. In response, India's Ministry of External Affairs highlighted that the Pakistani vessel failed to adhere to the 1991 bilateral agreement and did not observe professional conduct. The Pakistani ship sustained severe damages and was forced to return to harbor for repairs, while the Indian vessel continued its operational mission.

A political row has escalated over the UPI merchant discount rate (MDR) framework, with the BJP targeting Lok Sabha Leader of Opposition Rahul Gandhi. The BJP highlighted that the Parliamentary Standing Committee on Finance that approved the MDR revenue framework included five Congress MPs: P. Chidambaram, Manish Tewari, Gaurav Gogoi, Kishori Lal, and K. Gopinath. All five MPs were present on 12 August when the report was adopted without any recorded dissent in the published minutes. The parliamentary committee had noted that delaying the framework would leave payment service providers reliant on inadequate subsidies, potentially impacting investments in cybersecurity, fraud prevention, and network infrastructure.

Severe floods have shut down schools and submerged homes across parts of Bihar, including Raghunathpur village in Katihar district. To prevent learning loss and keep children engaged with their studies, private tutor Mohammed Saheb has converted a boat into a makeshift floating classroom. Classes are conducted for an hour to an hour and a half in areas where the water is shallow. Students attend the lessons with parental consent, stating that they feel safe and enjoy continuing their education despite the surrounding floodwaters.