top of page

By:

Correspondent

21 August 2024 at 10:20:16 am

Fee Signal

The government’s decision to create a legal framework for levying charges on UPI transactions has understandably triggered concern, even though it insists that ordinary users and small merchants will continue to enjoy free payments. The proposed amendment does not impose a fee on UPI today. But it removes the statutory barrier to one being imposed in the future, making the government’s reassurance less than the final word. The government argues that this is a measure for UPI’s long-term...

Fee Signal

The government’s decision to create a legal framework for levying charges on UPI transactions has understandably triggered concern, even though it insists that ordinary users and small merchants will continue to enjoy free payments. The proposed amendment does not impose a fee on UPI today. But it removes the statutory barrier to one being imposed in the future, making the government’s reassurance less than the final word. The government argues that this is a measure for UPI’s long-term sustainability. The world’s largest real-time payments system, which processed 2,366 crore transactions worth Rs. 29.9 lakh crore in July alone, cannot indefinitely depend on subsidies as transaction volumes, cybersecurity requirements and infrastructure costs rise. A nominal Merchant Discount Rate on larger merchant transactions, it says, would help create a more sustainable ecosystem without burdening ordinary users. That argument has merit. But so does the concern that a payment system which became a national habit precisely because it was cheap and frictionless should not slowly acquire a price tag. Once the legal machinery for charging exists, there is no guarantee that the boundary between large merchants and small ones, or between merchants and consumers, will remain permanently fixed. The Finance Minister has clarified that any Merchant Discount Rate will apply only to a limited set of merchant transactions above a threshold and will be nominal, well below card-payment rates. The details will eventually be decided by the UPI and Services Steering Committee headed by the National Payments Corporation of India. In other words, there is no charge on the table for the ordinary UPI user today. But there is now a legal mechanism for charges to be introduced tomorrow. That is precisely why any alarm, though exaggerated, cannot simply be dismissed. The government, through its clarification, has reassured that UPI’s free-to-consumer model remains intact. The important issue is whether its financing model can evolve without undermining the habits that made it revolutionary. UPI succeeded partly because it made digital payments cheaper and simpler than alternatives. There is also a larger principle at stake. UPI is not merely another commercial payments platform. It is the product of public investment, regulatory architecture and private innovation. The state should therefore be wary of treating its sustainability as an ordinary market problem. The sensible answer lies between free-for-all subsidies and indiscriminate fees: transparent thresholds, genuinely low MDRs, strong protection for small merchants and an absolute firewall around ordinary consumers. The government should publish the economic case for any future charge, including its effect on merchants and consumers. UPI was built on trust as much as technology. The government is right to protect its remarkable achievement. It should remember that keeping UPI free is not merely a political promise. It is part of the product.

Beyond Academics: Preparing Children with Essential Life Skills

A child who understands money, personal boundaries, and responsibility is better prepared for the challenges of adulthood.

For decades, education has been measured primarily by marks, grades, and academic excellence. While these continue to remain important indicators of academic achievement, they are no longer enough on their own to prepare children for the realities and challenges of everyday life. Today's world demands much more than just textbook knowledge or examination success. It demands awareness, responsibility, confidence, practical life skills, and the ability to make informed decisions.


One such essential life skill is financial literacy. Children should learn the value of money from an early age so that they develop a healthy understanding of its importance. They should understand the difference between needs and wants. They should recognise the importance of saving and develop the habit of spending wisely. Simple practices such as maintaining a piggy bank, earning rewards through responsibility, preparing a small budget, or understanding how banks work can gradually build lifelong financial discipline. They also help children develop good financial habits. A financially aware child is more likely to grow into an adult who saves regularly, avoids unnecessary debt, and makes sound financial decisions throughout life.


Another equally important aspect of modern education is age-appropriate sex education. For many years, this topic was considered a taboo subject. Families and schools often avoided discussing it because they believed that silence would protect children from unnecessary exposure. Today, however, we know that silence does not protect. Instead, it simply leaves children uninformed, unprepared, and vulnerable.


In an age of rapid urbanisation, increasing digital exposure, and easy access to information, children are exposed to situations that previous generations rarely encountered. Research studies and child protection cases have consistently shown that many incidents of sexual abuse are committed by people known to the child rather than by strangers. This makes awareness, education, and open communication even more important than ever before.


Age-appropriate sex education is not about encouraging early relationships. It is about teaching children to understand their bodies and respect personal boundaries. It also helps them recognise inappropriate behaviour, understand the difference between safe and unsafe touch, and develop the confidence to speak to a trusted adult without fear or shame. Such education empowers children to protect themselves, recognise warning signs, and seek help whenever it is needed.


Parents and schools share the responsibility of preparing children not just for examinations but for life itself. Along with mathematics, science, and languages, children must also learn financial responsibility, emotional intelligence, personal safety, digital citizenship, and strong ethical values. These essential lessons help shape character and build resilience. They also strengthen judgement and prepare young minds to navigate an increasingly complex and ever-changing world with confidence.


The purpose of education is not merely to create successful professionals but also to nurture responsible, aware, and confident human beings. When we combine academic excellence with practical life skills, we equip our children with the knowledge, understanding, and tools they need. This enables them not only to earn a living but also to live wisely, safely, responsibly, and with dignity.


(The writer is a tutor based in Thane. Views personal.)

Comments

bottom of page