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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.

Rallies across state back CJP

Several protesters gathered at Dadar, Mumbai, on Monday in support of CJP's Delhi protest. Pic: Bhushan Koyande
Several protesters gathered at Dadar, Mumbai, on Monday in support of CJP's Delhi protest. Pic: Bhushan Koyande

Mumbai: Endorsing the Cockroach Janta Party (CJP)’s massive agitation near the Parliament in New Delhi, lakhs of youth, students and social organizations took to the streets with angry protests, marches and demonstrations almost all over Maharashtra on Monday.


Opposition parties in the state including the Maharashtra Vikas Aghadi (MVA) allies Congress, Nationalist Congress Party and Shiv Sena (UBT), along with other smaller outfits either voluntarily joined the protestors or wholeheartedly supported them.


The political parties expressed full solidarity with the CJP, flayed the forced hospitalization of environment activist Sonam Wangchuk and expressed anger at the purported undermining of major public examinations beset with multiple leaks of question papers in recent years.


The demonstrations attracted thousands of collegians, unemployed youngsters, professionals like lawyers, social activists, civil society members, farmers and others, including a large number of women, as the local police deployed strict security to prevent any untoward incidents.


The protestors, carrying banners, placards, the National Tricolour and in some places, copies of the Constitution marched or assembled at various central locations in different cities, including Dadar in Mumbai, respective district headquarters since morning, braving showers or heavy rains in many areas.


They ranted anti-government slogans, vociferously demanded the resignation of the Union Education Minister of India Dharmendra Pradhan, seeking what they termed as ‘accountability by those holding public offices’, ‘transparency’, ‘safeguarding their democratic rights’ and ‘mutual dialogue’ to resolve such contentious issues.


In some districts, the gatherings also condemned the forcible eviction of Wangchuk to a government hospital two days ago, and lashed out the Delhi Police for lobbing teargas shells and mild lathi-charge on the protestors who reached very close to the Parliament – where the Monsoon Session 2026 opened on Monday.


Constitutional Rights

Speakers at the venues accused the government of allegedly suppressing the Constitutional right to peaceful protests through high-handed means, warning it could deepen public resentment rather than solving the problems the masses raised.


Though the emotionally-charged protests in the state remained largely disciplined and peaceful, in some places like Mumbai, a few demonstrators were detained in the afternoon for not adhering to police directives.


In Mumbai, the participants included mostly students, young professionals, retired citizens and civil society groups, while the district-level rallies elsewhere drew significant presence of the local youth, farmers organisations and social activists.


The vigorous campaigns were carried out in the capital Mumbai and second capital Nagpur, besides Thane, Palghar, Raigad, Ratnagiri, Sindhudurg, Pune, Nashik, Chhatrapati Sambhajinagar, Nandurbar, Dhule, Jalgaon, Akola, Amravati, Dhule, Ahilyanagar, Solapur, Kolhapur, Sangli, Satara, Beed, Latur, Dharashiv, Jalna, Nanded, Parbhani, Hingoli, Wardha, Chandrapur, Gadchiroli, Gondia, Bhandara, Washim, Yavatmal and Buldhana.


Thackeray slams Centre
Ex-Chief Minister and SS (UBT) President Uddhav Thackeray took potshots at the Bharatiya Janata Party-led central government saying “they can hold talks with Pakistan, but not our youth”.

His party MP Sanjay Raut alleged that ‘one word’ by a top judge had sparked a nationwide unrest for the past two months, igniting the youth to question the BJP governments at the Centre and in states.

Many irate youngsters told the media that the exam reforms centric campaign has now transformed into a broader nationwide movement for debates on civil liberties, dissent and democratic rights of the citizens, and they would continue till their aims are achieved.

Hundreds gather in Nagpur to support CJP
Hundreds of students, youth and senior citizens staged an agitation in Nagpur on Monday in support of activist Sonam Wangchuk and the Cockroach Janta Party's protest at Delhi's Jantar Mantar, demanding Union Education Minister Dharmendra Pradhan's resignation.

Chanting anti-government slogans over alleged exam paper leaks, angry demonstrators, including students and senior citizens, gathered at Samvidhan Square and vowed to press ahead with their agitation until the education minister steps down.

Protesters expressed outrage over the forcible removal of Wangchuk from Jantar Mantar in the national capital and the lathi-charge on students during their march to Parliament.

Holding placards, banners and photos of Shaheed Bhagat Singh, demonstrators gathered at the site amid heavy police deployment.

One of the young demonstrators said that their agitation will continue till the education minister resigns.

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