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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.

Mission to uplift the tribals

Having started  the first English school in Walvanda village, Savali Charitable Trust aims to bring tribals at par with all

Mumbai: Having worked for the cause of upliftment of the tribals residing in the remote villages around Jawhar in Palghar district of Maharashtra for years, Savali Charitable Trust has now started an English medium school in a remote village called Walvanda, with the sole aim of providing equal opportunities to the tribals who are convinced by the power of education, but suffer lack guidance and infrastructure.


While Savali has been working in the tribal belt in Palghar since 2007 through scores of initiatives from nutrition program, to medical and health care initiatives to guiding the tribals on how to generate employment opportunities, the idea of starting Savali English School was suggested by local tribal families who have since long benefited by the initiatives of the Savali.


Speaking to ‘The Perfect Voice’, Madhavi Deodhar who conducted adult education program in Walvanda and wife of Savali’s founder Vinayak Deodhar said, “The inspiration came from the locals who were convinced by the need to have education in English. However, our initiative of conducting adult education also helped us to get a positive response. Women attended the education program in huge numbers. Fortunately, men did not oppose.”


While Madhavi Deodhar patiently decided to educate the tribal residents on a basic level to make them self-reliant enough to be able to at least read and understand the documents they were blindly signing, her effort got tremendous response with most of the residents understanding the power of education.


Less infrastructure

There are few schools in Jawhar and Vikramgad area. However, they are very far and lack basic infrastructure and good teachers. Private schools in the area are expensive and unaffordable to the tribals. “A local tribal Suresh Nikule who helped us with land for our medical centre, urged us to build an English school and gave us his support. To our fortune, our 17 years of trust helped us gain support both from local govt authorities and local residents. We engaged teachers from Virar, Vasai area. We have also arranged a van with a driver for commuting”, said Manoj Borkar who has taken full charge of the school.


Borkar who is a Chartered Accountant and has been a Trustee after quitting a leadership role in the corporate world. The school spanned across 12,000 sq.ft which was started in June 2025, includes 24 classrooms, catering to students from kindergarten to grade 10 with class sizes capped at 35 to ensure attention to each child.


Vinayak Deodhar, a practicing Chartered Accountant and resident of Mumbai’s Vile Parle who established Savali in 2007, said, “What will the tribals do after they graduate from a normal school? We need to educate them so that they are truly independent. Hence, we have planned to include subjects that cover introduction to basic technology, like animal husbandry, electric engineering, technical training, agricultural training and home science. Our school will be unique in this area.”


Health care

Savali’s work in the tribal belt began with health care services and soon evolved into a full-fledged day care centre and 3 mobile medical vans with comprehensive facilities including pathology, digital x-ray, opthal to name a few, reaching nearly 200,000 tribal residents of 164 villages. Palghar district where Savali works is known for widespread malnutrition due to extreme poverty, lack of clean water, irregular electricity supply and poor transport facilities. For the last 9 years, Savali has supported 800 students in 27 govt schools with nutritional supplements and medication.


Vinayak Deodhar said, “Government has already initiated plans on all that we are doing. If the execution happens, we won’t need to do anything. While some resisted, there were several helpful officers who allowed us to continue, because the locals trusted us.”


Trust, the key

When it comes to tribal areas, the biggest challenge is trust. Typically, tribal residents do not trust anyone out of fear of being duped of their lands. Savalee believed that action cultivates trust not promises. “Walvanda village is blessed with rainfall. However, the houses are built on hills and water doesn’t reach them. There is no electricity supply. Women who were nine months pregnant walked long stretches to fetch a pot full of water. We first involved experts and ensured that in 37 villages women received tap water in their homes, and electricity supply was established through solar panels in 30 schools to get E-Learning education. That helped win their trust.”


Savali has also encouraged cultural events and celebrated Dahi Handi, Holi, Diwali. Deodhar said, “It’s very important to not impose any religion on them. They have long been victims of being helped in exchange for religious conversions. They are fed up with that. We celebrate cultural events and turn them into an earning also for them.For example, Mogra cultivation is ample in the area. We train them with the help of vendors in Mumbai to get them good return for their produce as they cultivate around 3.5 tonne mogara and earn rupees 2.5 crore every year.”


Vinayak Deodhar explained that their expenses are much higher than what they get, and most of their initiatives are funded through donations and some from their own pockets. The idea of the Deodhars is to give what they have earned so far to the society in whatever way they can.


(The trust can be reached out on savalitrust07@gmail.com and 9820223797).

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