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By:

Sumit Ranjan Das

21 August 2024 at 4:08:59 pm

UPI Must Stay Free

AI Generated Image Yesterday, I went to my neighbourhood shop to buy aloo chop and vegetable chop to eat with muri. I reached for my phone to pay by UPI, as I do for almost everything. The shopkeeper stopped me. “This is the last time we’ll accept UPI. From tomorrow, CASH ONLY.” I didn’t argue or explain that payments up to Rs. 2,000 remain free. It would have been a waste of breath. So I let it go, but I kept thinking about it on the walk home because I think I know what he was afraid of....

UPI Must Stay Free

AI Generated Image Yesterday, I went to my neighbourhood shop to buy aloo chop and vegetable chop to eat with muri. I reached for my phone to pay by UPI, as I do for almost everything. The shopkeeper stopped me. “This is the last time we’ll accept UPI. From tomorrow, CASH ONLY.” I didn’t argue or explain that payments up to Rs. 2,000 remain free. It would have been a waste of breath. So I let it go, but I kept thinking about it on the walk home because I think I know what he was afraid of. Picture a vegetable vendor with a pushcart at the corner of your lane. Call him Ramesh. He studied up to Class 8. Two years ago, he put a QR code on his cart because someone told him one thing: “Bhaiya, UPI is free. The money comes straight to your bank.” That one sentence did more for Digital India than any seminar. No card machine, no fee, no paperwork. Now tell Ramesh that a Merchant Discount Rate (MDR) may apply to specified transactions above Rs. 2,000, subject to exemptions. He won’t argue. He will put up a board: CASH ONLY. MDR is the fee a merchant pays to accept a digital payment, and UPI has been free for merchants since 2020. The new framework proposes a fee of 0.4 per cent on specified merchant transactions above Rs. 2,000, with a cap of Rs. 300 on transactions above Rs. 75,000. Payments up to Rs. 2,000 remain free. Person-to-person transfers are not covered, and under the announced plan, customers are not charged directly. On a Rs. 10,000 merchant payment, the merchant would pay Rs. 40. Small merchants receiving less than Rs. 1,00,000 a month through UPI were proposed to be exempt. One report adds that the committee was reportedly considering exempting businesses with annual turnover of up to Rs. 40 lakh. On October 13, the National Payments Corporation of India (NPCI) said the fee, due to be implemented on October 15, would be introduced immediately after Diwali, on a date to be notified separately. The decision merley postpones the fee. Consider Ramesh again. Suppose he sells Rs. 5,000 worth of vegetables a day, mostly through payments of Rs. 30 to Rs. 300. That amounts to around Rs. 1,50,000 a month, or roughly Rs. 18 lakh a year. Every one of his payments is below Rs. 2,000, so under the proposal, they remain free. But his monthly receipts exceed Rs. 1 lakh, which means he cannot simply assume that the small-merchant exemption covers him. Who will tell him? Who will explain it in Bengali, Hindi or Maithili, at his cart, in two minutes? A vendor who cannot understand the rules will choose the option that feels safest: cash. Cash is not the enemy. But for a small merchant, it also means hunting for change and losing customers who do not have it, facing the risk of theft, loss and counterfeit notes, spending time counting, storing and depositing money, and having fewer digital records to show a bank when seeking credit. “Free” does not mean UPI costs nothing to run. Security, fraud control, banking systems and customer support all require money. In March 2025, the Union Cabinet approved an incentive of Rs. 1,500 crore for low-value BHIM UPI merchant transactions for the financial year 2024–25. Genuine welfare must never be treated as a piggy bank. Every rupee, whether spent on welfare or infrastructure, should deliver greater value. Five measures would help keep UPI simple. First, person-to-person UPI transfers must remain free. Sending money to family should never come with an unexpected charge. Second, protection for small merchants must be straightforward. Thela-walas, tea stalls and kirana shops need one clear exemption, not five clever ones. Third, UPI must be funded transparently. The government and relevant institutions should publish what it costs to run the system, how much public money supports it, how much any proposed fee collects and what results follow. Fourth, the rules must be explained in local languages. A one-page notice or a short voice message through a payment app would reach Ramesh faster than a 20-page circular. Finally, the impact must be measured before any fee is extended. Changes in small-merchant acceptance and transaction volumes should guide the next step. India did not build UPI by making it clever. It built it by making it simple and free. (The writer is a Cost and Management Accountant and founder of TaxoDas. Views personal.)

Guru of Gurus: Tribute to M.M. Sharma

Correspondent
May 6
2 min read
Luminaries of science and industry at the launch of "Guru of Gurus" at the ICT in Mumabi.
Luminaries of science and industry at the launch of "Guru of Gurus" at the ICT in Mumabi.

Mumbai: In an evening marked by deep reverence and scientific celebration, eminent scientist Dr. Raghunath Anant Mashelkar paid a moving tribute to his mentor, Padma Vibhushan awardee Prof. Man Mohan Sharma. The heartfelt reverence took center stage at the K.V. Auditorium of the Institute of Chemical Technology (ICT), where academicians, students, and industry leaders gathered to honor one of India’s most distinguished chemical engineers.


Speaking passionately at the event, Dr. Mashelkar affectionately addressed Prof. Sharma as his revered "guru." He reflected extensively on Prof. Sharma's pioneering contributions to chemical engineering, placing special emphasis on his unique and visionary approach to science. Dr. Mashelkar noted that his mentor possessed the rare ability to seamlessly bridge the gap between complex fundamental research and tangible, real-world industrial applications. For Dr. Mashelkar, the occasion was not just a formal celebration, but a deeply personal reflection on a mentor whose teachings have left an indelible mark on both academia and the broader industrial landscape of the nation.


This gathering of scientific and industrial minds was organized to mark the launch of two significant publications that encapsulate Prof. Sharma’s extraordinary legacy. The releases included a newly penned Gujarati biography and a beautifully curated coffee table book aptly titled "Guru of Gurus," published by Sundaram Digital Publication House. Both works chronicle his unparalleled contributions to science, his philosophy of knowledge-sharing, and his lifelong dedication to mentoring generations of talent.


The sentiment of deep respect initiated by Dr. Mashelkar was echoed by other dignitaries throughout the evening. Guest of Honour Madhukar Parekh, Chairman of Pidilite Industries, expanded on this narrative by highlighting Prof. Sharma’s profound structural influence on India’s scientific framework. Parekh emphasized how Prof. Sharma’s steadfast commitment to innovation and his role as an institution-builder have actively shaped countless leaders, entrepreneurs, and technologists across various sectors.


Taking the podium amidst the tributes, Prof. Man Mohan Sharma looked toward the future rather than simply reflecting on his past achievements. He shared his enduring dream of elevating ICT to the prestigious status of a Central University, underscoring the institute's immense potential to evolve into a world-class, globally competitive center for science and engineering.


Ultimately, the event stood as a fitting and intellectually enriching celebration of a legendary figure. Through the poignant reflections of esteemed peers like Dr. Mashelkar and the launch of these new literary works, the gathering immortalized Prof. Sharma not just for his scientific brilliance, but for his profound dedication to nation-building and his lifelong, guiding role as the ultimate "guru of gurus."

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