AGP Executive Report

UPI MDR Push in India: India’s Finance Ministry says the 0.4% Merchant Discount Rate on UPI payments above ₹2,000 from Oct 15 won’t spur a cash comeback, with only ~4% of transaction volume affected and monitoring planned to stop merchants passing costs to customers. Regulator Crackdown on SMEs: SEBI barred Kore Digital and top executives from fundraising and trading after alleged Rs 541 crore revenue misstatement, with a forensic audit ordered. SME Tech for Micro-merchants (Vietnam): KiotViet’s Knote won an AI award for helping traditional sellers and micro-entrepreneurs manage sales and operations with localized AI. Trade Finance for Small Firms (Georgia): ADB named Basisbank “Leading Partner Bank in Georgia” for trade and supply chain finance activity, highlighting cross-border access for local businesses. Circular Business in India: Startups are turning temple floral waste into incense sticks and biomaterials, showing how small enterprises can build greener, value-added supply chains. Tourism Beyond Seoul (South Korea): A government-backed plan will fund multilingual, visitor-friendly upgrades in six commercial districts to boost local businesses and startups through K-culture tourism. SME IPO Watch: India’s SME market sees fresh listings and mixed grey-market demand, while an Axiom Gas Engineering IPO opens for subscription today.

UPI MDR Shake-up in India: India’s new Merchant Discount Rate for UPI (0.4% on payments above ₹2,000, with exemptions and sector rules) is sparking fresh backlash from traders and a Supreme Court PIL challenging the levy, with the Finance Ministry pushing back on “foreign influence” claims. SME Cybersecurity Gap: A Tata Tele Business Services/CyberMedia Research study finds 84% of Indian SMEs plan to raise cybersecurity spend, but only 12% continuously monitor systems and 45% cite lack of expertise—investment intent is outpacing readiness. Regulator Crackdown on SME Listing: SEBI barred telecom infrastructure firm Kore Digital and its top executives from fundraising and trading, alleging revenue inflation via non-genuine subsidiaries and manipulated statements, and blocked migration from NSE’s SME board. Cross-border Trade Boost for Women: Philippines women entrepreneurs are expanding exports, with about 30% of Women Strong Network members already selling internationally, supported by training, matching and financing. Tourism Hit for Japan SMEs: Chinese mainland arrivals to Japan fell 59% in August amid deteriorating ties, a blow to tourism-linked small businesses. China-ASEAN Expo Opens: The 23rd China-ASEAN Expo in Guangxi kicked off with thousands of firms, including many SMEs, pitching deals under CAFTA 3.0 and AI-enabled trade.

UPI MDR Backlash in India: Congress MPs and traders’ groups are pushing back on NPCI’s plan to charge 0.4% MDR on person-to-merchant UPI payments above ₹2,000 from Oct 15, arguing it could raise costs and even push people back to cash. Supreme Court Challenge: A PIL is set to test the MDR move, while the Finance Ministry says the decision was independent and not driven by “foreign influence.” SME Capital Markets Push: ISSPL filed a DRHP for an SME IPO to expand testing and inspection labs, and ARCIL’s SME listing is set after a strong grey-market premium. Fintech Leadership for Micro-Enterprises: Aye Finance appointed Nishit Shrivastava as CTO to scale tech-led lending for India’s micro enterprises. SME Credit Guarantee Watch: Korea’s Small Business Guarantee Fund saw default rates top 4% for the first time since 2015. Trade & Export Linkages: KOTRA expanded Central Asia cooperation via export matchmaking with 16 contracts worth about $14m signed on-site. Data Center Power Cost Fight (US): The US House passed the Ratepayer Protection Act to stop households and small businesses subsidizing data center power upgrades.

UPI MDR Shock in India: India’s NPCI will start charging a 0.4% Merchant Discount Rate on select UPI person-to-merchant payments above ₹2,000 from Oct 15, capped at ₹300, while keeping person-to-person transfers and payments up to ₹2,000 free; small merchants under the zero-MDR rules are largely protected, but retailers warn it could push some back to cash. Legal Pushback: A public interest petition has been filed in India’s Supreme Court challenging the MDR framework, arguing it lacks safeguards and transparency. SME Green Transition in ASEAN: A Manila forum backed by ESCAP and Temasek Foundation is coaching SMEs to meet sustainability demands from larger buyers, focusing on greener supply chains and practical support. MSME Credit Boost (India): UGRO Capital raised ₹380 crore from FMO to close India’s MSME credit gap, targeting women, youth and rural businesses plus eligible green projects. Kenya Insurer Eyes SMEs: SanlamAllianz General Insurance (Kenya) reported 21% profit-before-tax growth in 2025, citing integration benefits and a renewed push into the SME segment. UK Cash-Flow Strain: Research says 89% of UK firms faced payment delays, with longer terms hitting micro and small businesses hardest.

UPI MDR Shake-Up (India): India’s Finance Ministry and NPCI clarified that from 15 Oct 2026 a 0.4% Merchant Discount Rate will apply only to select merchant UPI payments above ₹2,000 (with a ₹300 cap), while P2P transfers stay free and most small merchant payments remain zero-charged—sparking debate in Parliament as the BJP defends the move and the NCP(SP) warns merchants may try to pass costs to customers. SME Support Push (Hong Kong): Hong Kong’s 2026 Policy Address outlines expanded SME and digital support, including more financing and trade tools, plus stronger cybersecurity and logistics modernisation. Fisheries Value-Chain Investment (India): India marks six years of PMMSY (launched 2020), with Rs 20,750 crore planned and Rs 2,500 crore allocated in Budget 2026-27, aiming to modernise fisheries beyond production into cold chains, transport, marketing and post-harvest systems. SME Digital Complexity (Asia Pacific): Mastercard’s Dreamonomics report says Asia-Pacific SMEs juggle multiple tools and payment methods, creating reconciliation and cash-flow headaches—while many want more integrated solutions. SME Growth via Policy & Skills (BRICS/China): China’s proposed BRICS digital cooperation initiative focuses on a shared digital ecosystem plus skills training and business matchmaking to bridge digital divides. SME IPO Watch (India): Robokidz Eduventures is set to launch a ₹31.09 crore BSE SME IPO on 21 Sep. Trade & Compliance (India Customs): CBIC’s chief urged faster AI use to move customs toward a near-paperless, trusted taxpayer system and better handholding for MSMEs.

UPI Payments Shake-Up (India): NPCI says a 0.4% MDR will start from Oct 15 on select person-to-merchant UPI deals above ₹2,000, capped at ₹300 per transaction (and a flat ₹5 for certain thin-margin categories like railways, telecom, insurance, fuel). SME Impact: P2P transfers stay 100% free, and most low-value merchant payments (up to ₹2,000) plus small merchants under the P2PM model keep zero MDR—aiming to protect street vendors and neighbourhood shops. Digital Tools for Small Biz (India): Jio and Canva partner to give eligible Jio users 12 months of Canva Pro/Pro Lite via MyJio, targeting students, creators and entrepreneurs. Fintech for SMEs (Saudi): Money20/20 Middle East opens in Riyadh with major fintech announcements, including Tabby’s $6.5bn valuation and SME-focused funding and partnerships. Local Support for Entrepreneurs (US/Asia-Pacific readers): Pittsburgh’s Hispanic chamber launches $420,000 in small business grants plus entrepreneur training and roundtables, with Duquesne SBDC support. AI Policy Pressure (US): Sen. Maria Cantwell pushes for federal guardrails and independent safety testing for frontier AI after reports of autonomous cyberattacks.

SME IPO Watch (India): Three SME listings open today—Vama Wovenfab, Shakti Polytarp and Quanto Agroworld—with bids closing Sept 17; Vama Wovenfab is drawing the most grey-market attention. AI for Small Business Visibility (India): WEB5 NEXGEN’s MyZia offers a free scan of how SMBs show up in AI assistants and auto-publishes optimized content to chase AI citations. Fintech AI Monetisation (India): Emkay says AI-led revenue for Indian fintech is likely to start only from FY28, even as firms roll out AI products now. UPI Fees Rule (India): India’s finance ministry bars charges on RuPay debit cards and UPI payments up to ₹2,000—setting up a possible future MDR debate for higher-value UPI. SME Cash-Flow Relief (China): China pushes large firms to pay SME suppliers in cash within 60 days, tightening oversight and financing support. Climate Insurance for MSMEs (Fiji): Fiji launches its first climate risk parametric insurance for MSMEs, using pre-set triggers for faster payouts after shocks. Hydrogen Deal (South Africa–Japan): The two countries move from a 2023 hydrogen/ammonia MoU toward concrete projects, including production, storage and skills. Robotics Expo (Saudi Arabia): YIJIAHE will showcase commercial cleaning and power-facility robots at SFMA EXPO 2026, targeting smarter facility operations. Workspace for Startups (Hong Kong): Industrious opens Indy by Industrious in Sheung Wan, adding flexible offices for SMEs and startups.

SME Finance & Trade: Pakistan’s Ahsan Iqbal pushed a digital-economy agenda during a China visit, proposing an SCO “Digital Connectivity and Compute Corridor” to boost cross-border fibre, data centres and AI, while stressing privacy, cybersecurity and sovereignty. SME Payments: Zoth launched zPayments on Base, enabling fast stablecoin-native cross-border payouts in local currency across 171 countries, targeting corridors in the Middle East and Southeast Asia. SME Digital Economy: Zoho named finalists for a rural-focused AI hackathon, aiming to build affordable tools for farmers and rural businesses facing water, irrigation and crop-stress challenges. SME Compliance & E-commerce: New e-commerce rules are flagged as a potential compliance burden for small sellers, adding pressure as online competition intensifies. Health Policy for Small Operators: CAPHRA unveiled an Asia-Pacific Declaration urging health ministers to legalise safer nicotine alternatives for adult smokers, spotlighting oral tobacco products as a major cancer driver. Business Disputes: Yatra’s board rejected Magna’s extended unsolicited tender offer as undervaluing the company. Corporate Updates: Asia Pacific Wire & Cable reported AGM approvals and H1 2026 revenue up 17.6% to US$267.5m, with EBITDA margin improving to 4.56%.

BRICS MSME push: At the New Delhi BRICS Summit, leaders backed stronger access to affordable finance for micro, small and medium enterprises, including a credit assessment framework using diverse data and a study of an invoice discounting mechanism to unlock working capital for export-ready MSMEs. Startup support: PM Modi also highlighted a BRICS Incubator Network and proposed a BRICS Startup Innovation Fund to connect entrepreneurs and incubators across member countries. Business climate reforms (Bangladesh): The government outlined plans to streamline investment services, fully digitalise approvals via BanglaBiz and BIDA’s one-stop platform, and boost export growth through priority sectors. SME banking upgrades (Japan): Japanese megabanks rolled out new services aimed at small and midsize firms, including online account opening and subsidy-linked guidance. Cyber risk for SMEs (Singapore): A logistics firm reported phishing attacks and responded with 24/7 threat monitoring and cyber insurance as coverage demand rises. E-commerce pressure (India): Small traders in Kashmir say e-commerce is squeezing MSMEs and shrinking margins. Solar sales bottleneck (India): Google’s Solar API is helping rooftop-solar installers generate remote 3D roof models and faster proposals, cutting early-stage legwork. Fraud prevention win (Asia-Pacific): SEON won a CybersecAsia readers’ choice award for identity and fraud management. IPO spotlight (India): Quanto Agroworld’s lemongrass-focused IPO opens Sept 15 on BSE SME.

BRICS Summit (India): PM Modi wrapped the 18th BRICS meeting in New Delhi by urging “files to real life impact,” pushing resilience, innovation, cooperation and sustainability—and warning against the “weaponisation” of technology and critical minerals that could widen gaps for Global South economies. SME Finance & Trade: BRICS business bodies backed easier finance and trade access for MSMEs, including work on invoice discounting and credit assessment frameworks that use more data to expand formal lending. Women-Led Entrepreneurship: The BRICS Women’s Business Alliance called for open supply chains, procurement access, and stronger pathways from participation to leadership, urging better capital, tech and networks. Philippines Digital Trade Readiness: Analysts said the ASEAN digital deal (DEFA) will only boost investment and exports if the Philippines strengthens domestic supply chains and production. PH MSMEs Under Pressure: Philippine MSMEs are cutting costs and weighing layoffs amid fuel-price shocks from the Middle East war, with calls for faster infrastructure and easier financing. Payments for Small Firms: Ramp and Stripe launched instant stablecoin bill-pay tools aimed at small businesses, enabling 24/7 bank-funded payments without crypto know-how. China Tax Scrutiny: China’s tax authorities are reportedly re-checking closed small businesses, raising anxiety that deregistered firms can still face audits.

BRICS Summit: PM Modi pushed “inclusive global governance” at the New Delhi BRICS meeting, warning against the “weaponisation of technology and critical minerals” and backing an early-warning system for diseases plus disaster resilience and MSME cooperation. SME Finance: BRICS also backed easier finance for MSMEs, including work on an invoice discounting mechanism and credit assessment frameworks using more data. Trade Pressure on Small Firms: A US-Canada tariff fight is hitting small makers and suppliers—sprinkle ingredients included—showing how fast compliance and sourcing decisions can become survival issues. Digital Discovery for Shops: Instagram Reels are increasingly acting like a search engine for restaurants and local services, changing how small businesses get discovered and chosen. Local Lending Boost: Bangladesh’s Bank Asia will lend to cottage, micro, small and medium enterprises at 9% under a central-bank refinance fund. Food Export Push: Pakistan’s International Food Asia Expo in Lahore is drawing 1,000+ brands and foreign delegations to expand packaging, safety and export readiness.

SME Credit Access (Bangladesh): Bank Asia will lend to cottage, micro, small and medium enterprises at 9% under Bangladesh Bank’s Tk 5,000 crore working-capital refinance fund, aiming to help viable firms run at full capacity and support jobs. Digital Lending (India): SBI is building a UPI-data solution to assess small business creditworthiness when GST isn’t available, targeting faster, fully digital loan decisions. E-commerce Compliance (India): New amended consumer rules set to start Jan 1, 2027 could raise compliance load for small online sellers, including ranking disclosures and “prior price” requirements for discount claims. BRICS & MSMEs (India): At the New Delhi BRICS Summit, leaders backed stronger support for micro, small and medium enterprises, including better access to finance and technology, plus reforms to global trade and institutions. Accessible Justice (India): India’s 3rd National Lok Adalat settled 2.10 crore cases worth ₹13,589.28 crore through consensual dispute resolution, with a push to make justice easier for ordinary people. Food Processing Push (India): India targets raising food processing from 16–17% to 25–30% to cut post-harvest losses and boost exports, with support for MSMEs via machinery, packaging and cold-chain.

Fintech for SMEs: Amazon Pay is “doubling down” on insurance in India, adding travel and other products as it pushes beyond payments into credit, insurance, and savings for small businesses. Digital credit access: India’s SBI is developing a UPI-data-based lending approach for small firms without GST, aiming for fast, end-to-end digital loans. SME finance policy: Malaysia’s Budget 2027 push is being framed around making growth more equitable, with extra attention on small business owners ahead of the Oct 9 tabling. SME IPOs: Vama Wovenfab’s BSE SME IPO opens Tuesday, Sept 15 (fresh issue, listing tentatively Sept 22). Capital markets watch: India’s NSE IPO opens Sept 17 and a busy week of 11 IPOs is set to raise about Rs 24,574 crore, led by NSE and Hero Motors. Cross-border women-led trade: At the BRICS Business Forum, Iran and UAE backed a push for better networks and B2B matchmaking for women entrepreneurs across the bloc. SME marketing shift: Pakistan’s small businesses are increasingly using short videos and social posts on Facebook/Instagram/TikTok/WhatsApp to sell directly without building full e-commerce teams.

SME Credit Access (India): State Bank of India says it’s building a UPI-data lending model for small businesses that don’t have GST registration, using UPI transactions as a proxy for sales and aiming for end-to-end digital loans within a day once customer consent is in place. Fintech Product Push (India): At Global Fintech Fest 2026, BharatPeX launched an enterprise payment gateway with one integration for 100+ payment options and tools like reconciliation and tokenisation, while NPCI rolled out AiNxt, an open-source agentic AI platform for building AI agents for UPI. SME Lending Support (Russia): VTB will join a preferential lending program for Wildberries sellers hit by warehouse attacks, offering working-capital loans up to 500 million rubles for as long as 18 months. Policy for MSMEs (Malaysia): KUSKOP submitted Budget 2027 proposals to boost MSME resources, cut bureaucracy, and lower the cost of doing business. Education for Digital Skills (ASEAN): The ASEAN Foundation-backed AI training push targets 1.7 million learners and educators by 2028, moving from awareness to hands-on classroom use. Regulatory Watch (Tech, US): ASUS won an FCC reprieve allowing many consumer routers to be sold again in the US until March 6, 2028, while TP-Link still awaits approval.

SME Policy Push (Malaysia): Malaysia’s KUSKOP has submitted Budget 2027 proposals to boost resources for MSMEs, cut bureaucracy, and lower the cost of doing business, aiming to improve government service efficiency. Crypto Lending (Hong Kong): Lendary is expanding its crypto-backed lending platform with faster processing, fixed terms, flexible repayment, and broader LRY utility across borrowing and participation. SME Market Finance (India): Two BSE SME IPOs open for subscription today—Injecto Polymers and Century Business Media—while ARCIL’s IPO is nearing close after 87% subscription on day two. SME Scaling (South Africa): Takealot launches a R1.7m accelerator competition to help made-in-SA manufacturers scale via training, mentorship, and marketplace access. Fintech & Jobs (India): Nandan Nilekani says AI-proof job creation should come from millions of small firms, not just big companies. UPI Upgrade (India): At Global Fintech Fest, RBI unveiled UPI Tap & Pay and an AI-led MyUPI view to evolve UPI into a smarter consumer interface. SME Investment Outlook (Pakistan): British International Investment plans at least $2b across Asia and Africa and flags Pakistan for expanded private capital, including SME financing.

SME Cost Pressure: Inflation is forcing small firms to make tough calls on layoffs and inventory as input prices and insurance costs bite, with profits falling for many businesses that can’t pass costs to customers. Digital Payments & Credit Access: India’s UPI keeps scaling fast, and policymakers are pushing banks and fintechs to use UPI data to expand credit for MSMEs. AI for Small Business Jobs: Nandan Nilekani says job creation in the AI era will come from millions of small companies, arguing smaller firms can adapt work in ways AI can’t easily replace. Women in Business: India’s women’s workforce participation is rising, but funding and leadership gaps remain, with calls for more women-led enterprises and boardroom representation. Cross-Border SME Banking: Nanyang Commercial Bank highlights growth in Hong Kong–mainland SME clients and “Go Global” support amid tariff uncertainty. Cyber Risk for SMEs: Japan’s ransomware surge is increasingly hitting small and midsize businesses, with double-extortion tactics driving pressure. Policy & Trade Friction: Kenya grants foreign small traders a 90-day amnesty to regularise status after a crackdown sparked xenophobia fears. Disaster Relief: Lions Clubs International Foundation backs Nepal flood response with US$200,000 for emergency aid and recovery support.