The Indian rupee closed at 94.96 against the dollar following central bank measures, including a dedicated dollar window for oil companies. Meanwhile, tech major Zoho Corporation has paused 2026 salary hikes to manage high AI infrastructure expenses, and the NPCI has deferred new UPI merchant charges until after the Diwali festive season.
The Indian rupee ended its recent slide, closing at 94.96 against the US dollar following decisive action by the Reserve Bank of India. To curb excessive volatility, the central bank implemented a specific dollar liquidity window for state-run oil marketing companies and tightened regulations on derivative trading. These steps were designed to reduce speculative pressure on the currency and limit spot market dollar demand. The rupee saw a gain of nearly 1% earlier in the week as traders adjusted to the RBI’s defensive stance, though the currency remains under pressure from global macroeconomic factors and crude oil price trends.
Tech Sector Cost Pressures
In the technology sector, Zoho Corporation is adopting a conservative financial approach, with founder Sridhar Vembu confirming that the company will not provide salary increments for 2026. This decision reflects the mounting operational costs of integrating artificial intelligence into software workflows. According to the company, server infrastructure costs have surged fourfold, forcing the firm to prioritize liquidity. Zoho has also maintained a steady workforce for the past 18 months and has significantly reduced its marketing expenditure. This move highlights a broader trend where software companies are increasingly prioritizing operational efficiency over aggressive expansion as they navigate the capital-intensive nature of new AI technologies.
UPI Fee Deferral
For the retail sector, the National Payments Corporation of India has provided temporary relief by postponing the implementation of the 0.4% Merchant Discount Rate on select UPI transactions. The fee, which was originally scheduled for introduction on October 15, will now be deferred until after the Diwali festival period. This decision aims to support small retailers who rely on festive sales, though payment service providers remain uncertain about the final timeline for fee implementation. The delay reflects the regulator's attempt to balance the need for digital adoption with the economic viability of payment processors.
Education Infrastructure Reforms
Beyond financial and tech updates, infrastructure reform is also gaining traction. Infosys co-founder Nandan Nilekani has proposed an overhaul of the national examination system to improve security and prevent paper leaks. The recommended plan includes a shift toward last-minute, automated generation of question papers from randomized data banks and the expansion of computer-based testing facilities. A government task force is currently reviewing these proposals to modernize testing protocols, aiming to reduce the risk associated with manual paper handling. Investors and stakeholders in the tech and retail sectors will continue to track how these policy shifts and cost-management decisions impact broader business operations in the coming quarters.