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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.)

Selective Outrage

May 9, 2025
2 min read

India’s left-liberal media has long prided itself on being the torchbearer of secularism, dissent and moral rectitude. In the aftermath of ‘Operation Sindoor,’ the precision military strike launched by the Modi government against Pakistan-based terror camps, it has revealed its not a principled commitment to peace or truth, but a disturbing penchant for ideological prejudice, performative sanctimony and selective outrage.


The operation itself was a textbook display of calibrated force and geopolitical prudence. Prime Minister Narendra Modi, often caricatured as ‘authoritarian’ by the ‘liberal’ English-language commentariat, chose patience over provocation. He consulted opposition leaders, held detailed discussions with defence chiefs and took key international stakeholders, notably the United States and Russia, into confidence before authorising limited military action. The symbolism of ‘Operation Sindoor’ was also carefully crafted: a pointed reminder that the attack’s real victims were Hindu women widowed by Pakistan-sponsored militants in Kashmir. The government’s briefings were also strategic and symbolic as two ranking female officers, one of them Muslim, were made the public face of the mission, underlining a new Indian confidence that blends military muscle with democratic pluralism.


But this was unacceptable for India’s entrenched ‘left-liberal’ press, steeped in academic jargon, Western validation and a knee-jerk hostility to anything remotely ‘Hindutva.’ That a Muslim officer briefed the nation on ‘Operation Sindoor’ was branded ‘tokenism’ by such commentators. Others crudely alleged that the April 22 Pahalgam massacre was the logical culmination of reported atrocities against Muslims since Modi came to power in 2014.


The semantic nitpicking over ‘Operation Sindoor’ was maddening. An editor of a prominent magazine dubbed the operation’s name as ‘patriarchal’ and coded in Hindutva tropes. In a bizarre case of moral inversion, sindoor was likened to symbols of ‘honour killings’ and gender oppression, ignoring both its cultural resonance and the cruel reality that these women had lost their husbands in cold blood. For years, India’s ‘secular’ commentariat nurtured a preordained binary: the Congress may be flawed but was at least ‘secular’ while the BJP was an inveterate ‘fascist.’ Thus, the 2002 Gujarat riots are always focused upon but the Congress-backed pogrom of the Sikhs in 1984 is either downplayed or rationalised. Terrorism in Kashmir is tragic, but state retaliation is ‘jingoism.’ A strong Muslim voice in government is ‘tokenism’ but its absence is ‘exclusion.’ Even journalistic rigour is selectively applied. When Pakistan claimed to have downed Indian jets, some Indian outlets rushed to amplify the story before verification, inadvertently echoing enemy propaganda.


Dissent is vital in any democracy. But when its becomes indistinguishable from disdain, when editorial choices are dictated by ideological conformity, then the press becomes a caricature of itself. Ironically, many of these journalists enjoy robust free speech and loudly lament India’s supposed slide into ‘fascism’ from the safety of their X handles. Yet they turn a blind eye to Putin’s repression, Erdogan’s purges or Xi Jinping’s camps. In their eyes, Modi remains the greatest threat to democracy even as they broadcast their outrage freely, without fear of censorship or reprisal. ‘Operation Sindoor’ was a statement of cultural self-confidence. That confidence has rattled those who have spent their careers gatekeeping Indian discourse. Today, their monopoly is over. The people are watching and they no longer believe that the emperor has clothes.

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