Skip to playerSkip to main content
  • 51 minutes ago
A political confrontation has broken out between the Congress and the Bharatiya Janata Party over a 0.4 per cent merchant fee proposed on Unified Payments Interface transactions exceeding 2,000 rupees. The Congress accused the central government of burdening citizens and succumbing to global pressure, alleging the cost will eventually fall upon consumers. The Bharatiya Janata Party refuted these allegations, stating that transactions up to 2,000 rupees remain entirely free for consumers and that 96 per cent of transactions will incur no fees. Industry experts noted that person-to-person payments carry no charges and that the vast majority of person-to-merchant payments fall below the 2,000 rupees threshold. They explained that merchant fees on higher-value transactions help sustain private payment infrastructure without impacting small vendors or everyday users.

Category

🗞
News
Transcript
00:00Let me now tell you about the latest showdown that's happening.
00:03One of the most common issues of payment right now available to us that most Indians are using is the
00:09UPI.
00:11But that's led to a political showdown.
00:13The Congress is charging at the BJP over the fees that will now be levied to the merchants, not to
00:19the customers, to the merchants.
00:21Both the Congress and BJP are going head-to-head over the 0.4% merchant fee on the transaction
00:27above 2,000 rupees.
00:28Congress is mounting a sharp attack, accusing the PM of popularizing UPI once, only to now tax people.
00:35Because they are alleging that eventually the merchants will take it from the customers.
00:40The party is alleging that the merchant fee is being imposed for a reason.
00:44This is under America's pressure.
00:46Congress is calling Prime Minister to stand up, confront the global pressure.
00:50But the BJP is also hitting back hard, making it clear that no customer will be charged for any fee.
00:56Merchants may be charged, but you and I, using this UPI, will not have to pay additional fee.
01:01The party has accused Congress Party of suddenly discovering their love for UPI and of misleading people over the issue.
01:08Because all this while, even before UPI was introduced, they were critical of it.
01:16The people have had a hard time for the people in which wereSayed to the Taliban, who were taking the
01:27money from the organization.
01:27The people who get the money from the organization, their governments were struggling to carry out $2,000.
01:39So they are not using this type of $2,000.
01:41The government is doing that they don't have to pay for any foreign help.
01:45foreign
01:51foreign
01:52foreign
01:53foreign
01:56Thank you very much.
02:51Thank you very much.
03:01Thank you very much.
03:48Thank you very much.
03:53Thank you very much.
04:50Thank you very much.
04:53Let's go back even further.
04:55In 2016, this is what Rahul Gandhi had to say about the UPI.
05:23So it has devastated, especially the poor people, farmers, fishermen, daily wage laborers, everybody
05:32has been hurt by this.
05:36Political showdown aside, what are the industry members saying over this UPI charge?
05:41My colleague, Anjali Pandey spoke to Rohit Mahajan, he's the founder of Pluto's and here's what
05:47he was saying.
05:48Sir Rohit Mahajan, help us understand this 0.4% lovey on UPI transactions above 2,000 rupees
05:55from a merchant's point of view.
05:57What changes for the merchants?
06:01So very nice.
06:03You want me to tell you the basics of the UPI first.
06:08So UPI is actually are two things.
06:11One is P2P and second is P2M.
06:14What is P2P?
06:15P2P is when I transfer you a money or you transfer me a money, this is person to person.
06:21So there is no charge on P2P.
06:24Let's be very, very clear about it.
06:26There are no charges on P2P.
06:28Now, let's come on to the P2M.
06:31So what is P2M when we pay to a merchant or QR code or something?
06:35Now, if you'll see and you'll be shocked to hear, 86% of P2M transactions are less than
06:44500 rupees.
06:4596% is less than 2,000 rupees.
06:49So 96% of transactions on P2M are free.
06:56And government is saying that no one can levy any charges on that.
07:02Earlier, few apps were charging some amount of money on top of it.
07:07Now, nobody can charge on 96% on the transaction.
07:12Mr. Mahajan, I'll come to that because there are other experts also who are claiming that
07:16the National Payment Commission of India is already having a lot of profits and that
07:22UPI is also contributing to those profits.
07:25Then what was the need for this extra livery that has been imposed as you were talking about
07:30the development?
07:30Why can't that be done with the help of the profits?
07:34See, we are talking about today's thing.
07:38We need to talk about for next 10 years.
07:41So one is NPCI charges a certain amount, taking a loss or profit, whatever.
07:46It is for a certain amount.
07:48But at the end of the day, when there is a private apps, there are private TPAPs, private
07:52payment infrastructure companies like ours, we are bleeding.
07:55So trust me, it is a Robinhood thing which government has done.
07:59The basic is 96% small vendors and the shopkeepers, they are not charged.
08:07On paper, it says that the merchants will be bearing the cost and the consumers will not
08:12have to pay anything extra.
08:14But do you think that the merchants will be absorbing this cost or will it be secretly
08:20passed to the consumers in the form of some hidden charges?
08:23So I'll tell you an example.
08:25If you are from Delhi, so there is a Khan market and there is a Sarojini market.
08:30So Khan market, people are already paying through a debit and credit card.
08:35And let's be very frank.
08:36They are using their, flashing their credit cards and they are paying more than 1% and
08:41merchants have been charged for 1%.
08:45So 0.4% for them is nothing.
08:48And if you'll go to Sarojini market, it is less than 2000.
08:51Anyways, you are free.
Comments

Recommended