top of page

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.)

The Label Trap

May 29
3 min read
AI generated image
AI generated image

A parent stands in a supermarket, holding a packet of biscuits that says “zero sugar” and “high fibre.” The packet looks attractive and trustworthy. The child beside the parent is already excited by the colourful cover. It feels like a smart and healthy choice. But what is written in small letters on the back may tell a very different story.


This pattern is increasingly becoming a regular feature in many Indian homes today. Packaged-foods, once eaten only occasionally, have now become part of daily life. Busy schedules and modern lifestyles have made convenience more important than caution. Food labels, which are supposed to guide consumers honestly, often end up influencing and confusing them instead.


Hidden Truths

At first sight, food labels look informative. They carry ingredient lists, nutrition charts, and bold claims. But many consumers do not know how to read them properly.


Ingredients are always listed according to quantity. This means the first few ingredients form the biggest part of the product. In many biscuits and instant noodles, refined flour, sugar, and palm oil appear at the top. Yet sugar is often hidden under different names such as maltose, dextrose, glucose syrup, or corn syrup. An ordinary buyer may not realise that all of them mean added sugar.


Serving sizes can also be misleading. A packet may show fewer calories, but only for a very small portion that most people never actually eat. A person may finish the entire packet without realising that the calorie count must be multiplied several times. Words like “multigrain,” “lite,” “natural,” or “baked not fried” create a healthy image, even when the product contains high amounts of salt, sugar, or unhealthy fats. Sometimes, what is highlighted on the front hides what should really worry consumers.


The health impact of such foods is becoming increasingly visible. Doctors are seeing a rise in obesity, Type 2 Diabetes, and Cardiovascular Disease among both adults and children. Diets filled with ultra-processed foods slowly damage health over time. High salt, excess sugar, unhealthy fats, and refined carbohydrates place pressure on the body day after day.


Clever Marketing

Food packaging today is a powerful marketing tool. Companies spend huge amounts of money studying consumer behaviour, especially that of children.


Bright colours, cartoon characters, free gifts, and cheerful slogans are carefully designed to attract young minds. Repeated advertisements on television, mobile phones, and social media create familiarity. Celebrities also play a major role. When famous actors or sports personalities promote snacks or sugary drinks, consumers often believe the products are safe and healthy. Their popularity creates emotional trust, even when the nutritional value is poor.


Parents, too, face pressure. In homes where both parents are working, packaged foods offer convenience and save time. School culture and peer influence also shape eating habits. A child carrying homemade snacks may sometimes feel left out among friends carrying branded packaged foods.


As a financial side to this issue, many products promoted as “healthy” are sold at higher prices. Consumers often pay extra for attractive packaging and clever advertising rather than genuine nutrition.


India already has food safety rules through the Food Safety and Standards Authority of India. But many gaps still remain. Some claims may be technically correct yet still misleading. For example, a packet may proudly say “zero cholesterol” even though plant-based foods naturally contain no cholesterol at all. Such statements create a false sense of healthiness.


This is why consumer awareness is extremely important. Reading labels carefully is no longer optional, but necessary.


Simple habits can help. Consumers should check the first three ingredients before buying any packaged food. Short ingredient lists with familiar names are usually safer. People should also avoid getting carried away by large claims printed boldly on the front of the pack. Understanding serving sizes is equally important.


Fresh and homemade foods may not have glossy advertisements, but they usually provide better nutrition and balance.


At the same time, responsibility should not fall only on consumers. Companies, advertisers, endorsers, celebrities, regulators, schools, and even courts have a role to play in protecting public health. Misleading claims that affect children and families deserve stricter scrutiny and accountability.


The issue is not about avoiding all packaged foods completely. It is about becoming more aware of what we eat. Today’s consumer is not always careless, but often overwhelmed by attractive packaging and confusing information.


Whenever a brightly packaged product claims “healthy goodness,” taking a moment to read the fine print could make all the difference.


(The writer is a retired banker and author. Views personal.)

Comments


bottom of page