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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.

MVA protests for third day:

Mumbai: The Maharashtra Vikas Aghadi (MVA) allies continued their agitation for the third day in different parts of Maharashtra with an aggressive state Congress hitting the streets today to protest the detention of Leader of Opposition in Lok Sabha Rahul Gandhi, his sister Priyanka Gandhi-Vadra and other Congress leaders yesterday, here on Wednesday.


State and city Youth Congress again carried out vociferous protests near Mantralaya raising slogans, carrying banners and placards slamming the state and central Bharatiya Janata Party (BJP), and when some attempted to enter inside, they were prevented by a strong posse of Mumbai Police deployed there since Monday.


As tensions appeared to escalate, the police clamped down by detaining top state and city Youth Congress leaders including President Harshwardhan Sapkal, Vijay Wadettiwar, Bhai Jagtap, Hussain Dalwai, and many others.


Thousands of students carried out a fresh demonstration at Dadar west Shivaji Park to vent their ire at the police action on Cockroach Janta Party (CJP)’s agitation in New Delhi on Monday. Several MVA leaders and Maharashtra Navnirman Sena chief Raj Thackeray visited or expressed solidarity with the protesting youth, comprising many women.


Opposition’s Voice

The Congress leaders alleged that Rahul Gandhi was targeted by the BJP-led government to muzzle democratic dissent, suppress the Opposition voices inside and outside Parliament and trampling upon the peoples' Constitutional Rights to protest peacefully.


Defying pouring rains in the city on Wednesday, Congress workers along with activists of MVA allies, staged a noisy demonstration in Chembur and another group attempted to storm the BJP office in south Mumbai, condemning the assault on students in New Delhi and the detention of the Gandhi siblings.


Senior Congress leader Hussain Dalwai flayed the government for “misusing the police” to gag democratic rights and the protests were intended to defend the Constitution and democracy against the BJP’s policy of intolerance of dissent in any form.


“This is gross injustice. We are not allowed to protest against the government failures as they are misusing the police. The PM is scared of taking the resignation of Dharmendra Pradhan as he could be the next. We want to highlight to the BJP to govern the country as per the Constitution,” Dalwai declared, interacting with the media at Nariman Point.


As the BJP also threatened to launch counter-protests, the police cordoned off and deployed a precautionary security ring around Tilak Bhavan, the state Congress headquarters, as leaders from both sides exchanged political darts and looked aggressive enough for a confrontation.


MVA ‘bandh’, ‘Tricolour’ march today
The state is set for another two days of political turmoil as the MVA has announced a Maharashtra shutdown (‘bandh’) on Thursday followed by a non-partisan ‘Tricolour Peace March’ on Friday.

MVA allies, Vanchit Bahujan Aghadi (VBA) President Prakash Ambedkar and Shiv Sena (UBT) leader Aaditya Thackeray, besides other leaders of the alliance, informed of the state and city level actions today.

Ambedkar appealed to the masses and also the BJP youth to participate wholeheartedly in the bandh tomorrow and claimed that students’ bodies, parent-teachers associations, colleges, universities, other institutes of higher education, private coaching institutions, and other governmental departments could support the shutdown, as it has now become a national issue.

Aaditya sought the peoples’ participation in the ‘Tricolour Peace March’ on the theme of “One Nation, One Emotion” planned on July 24 afternoon to Shivaji Park, in support of environmentalist Sonam Wangchuk, the Cockroach Janta Party, plus the youth and students protesting in New Delhi.

Terming it as a national citizens’ movement rather than a political party, he called upon the people not to carry any party flags but unite under the National Tricolour to assert democratic rights and express resentment against the government’s high-handed policies.

Meanwhile, Mumbai Police have already imposed prohibitory orders under Section 144 across the city from July 23-to- August 6, apprehending the possibility of law-and-order disturbances.

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