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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.)

Reassessing Diabetes’ Dominant Paradigm

Jun 18
3 min read

Type 2 diabetes mellitus (T2DM) is commonly attributed to insulin resistance, defined as impaired responsiveness of skeletal muscle, adipose tissue, and liver to insulin. Although the concept is deeply embedded in modern metabolic medicine, it remains largely inferential and descriptive. This paper critically examines conceptual, physiological, and epidemiological limitations of the insulin resistance paradigm. It argues the model lacks a demonstrated unifying mechanism capable of coordinating selective impairment across multiple tissues, does not adequately explain preservation of many insulin-mediated functions, and leaves unresolved clinical paradoxes including rapid reversibility of hyperglycemia, metabolically healthy obesity, and diabetes in lean individuals. Reassessment of insulin resistance as a primary causal construct may be necessary for progress in prevention and treatment of type 2 diabetes.

 

Type 2 diabetes mellitus has become one of the most consequential chronic diseases of modern medicine. Its prevalence has risen sharply within a historically brief period, both in the United States and globally. The prevailing model holds T2DM develops because skeletal muscle, adipose tissue, and liver become resistant to insulin. Muscle fails to take up glucose efficiently, adipose tissue does not adequately suppress lipolysis, and the liver continues to release glucose despite circulating insulin.

 

Yet the insulin resistance model has masked unresolved problems. The term functions more as interpretation of measured glucose dynamics than as directly demonstrated lesion in cell biology. Measures such as HOMA-IR and clamp studies quantify relationships among glucose uptake, glucose production, and insulin concentration, but do not identify a primary molecular defect. The field observes altered glucose handling and names the observation insulin resistance, then uses that label to explain the same observation. This paper questions whether such observations justify the conclusion that a primary defect in insulin signalling is the central biological driver.

 

Historical Development  

The concept of insulin resistance emerged from the need to reconcile hyperglycaemia with presence of insulin. The glucose clamp technique gave investigators a rigorous way to compare insulin levels with glucose disposal, and lower-than-expected disposal rates were interpreted as evidence tissues had become resistant. It quantified the phenomenon; it did not settle the cause. Over time, language of insulin resistance acquired status beyond evidence supporting it. It was inferred from outcomes, generalized across tissues, and institutionalized before a unifying biological mechanism had been demonstrated.

 

Definitional and Conceptual Problems  

A central weakness lies in imprecision. Insulin resistance can refer to reduced whole-body glucose disposal, impaired insulin-stimulated glucose transport, failure of insulin to suppress hepatic glucose production, or a broad syndrome inferred from surrogate indices. A descriptive index is substituted for a mechanism. Hyperglycaemia may be viewed analogous to hypercholesterolemia, in that both are defined by elevated circulating biomarkers that may arise from multiple underlying causes.


Major Biological Inconsistencies  

No unifying mechanism across tissues: The standard account requires skeletal muscle, adipose tissue, and liver all develop diminished insulin responsiveness. Despite decades of research, no established signal has been shown to orchestrate coordinated reduction in insulin responsiveness across all three tissues.

 

Selective preservation of other insulin functions: In T2DM, glucose handling is said impaired, yet many other insulin-mediated actions remain operative. Protein synthesis continues. Lipogenic processes are not uniformly absent. Basic physiological functions such as maintenance of muscle tone and thermoregulation are preserved. If the primary defect were generalized failure of insulin signalling, broader collapse might be expected. Instead, the picture is one of selective disturbance concentrated around glucose handling. Why should insulin signalling fail specifically in ways that elevate blood glucose while remaining functional for other tasks?

 

Selective vulnerability versus other hormones: Insulin does not operate in isolation. Glucagon, catecholamines, cortisol, growth hormone, incretins, adipokines, and other signals influence nutrient handling. Yet a dominant model posits resistance focused primarily on insulin. Glucagon continues to stimulate hepatic glucose production. Catecholamines retain lipolytic effects. Cortisol and growth hormones continue to exert major physiological actions. Selective targeting of insulin weakens the idea that T2DM is fundamentally hormone resistance disorder.

 


The insulin resistance paradigm has become default explanation for T2DM, but conceptual authority exceeds demonstrated mechanistic foundation. It lacks unifying coordinating mechanism across tissues, struggles to explain selective preservation of insulin’s other functions, cannot account for absence of broad parallel hormone resistance, and sits uneasily with rapid reversibility of hyperglycaemia, lean diabetes, metabolically healthy obesity, and speed of modern diabetes epidemic. Reassessing the dominant paradigm may be necessary if progress in prevention and treatment is to match the scale of disease.

 

(The writer is a retired physician based in Portland of America. Views Personal.)

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