NITI Aayog VC defends UPI merchant fee, says businesses must be self-sustainable
NITI Aayog defends the government's UPI transaction fee decision. Businesses must become sustainable without relying on government subsidies. A small fee will apply to merchant transactions exceeding two thousand rupees. Person-to-person and small payments remain exempt from this new charge. This move aims to strengthen the UPI ecosystem's safety and security.
NITI Aayog Vice Chairman Ashok Kumar Lahiri defended the government's decision to impose a merchant discount rate (MDR) on UPI transactions, stating that businesses must find ways to remain self-sustainable without relying on subsidies. Lahiri compared collecting taxes to a bee collecting honey from a flower, gently and gradually without causing harm.
He told reporters that businesses must find ways to sustain themselves without subsidies. The MDR of 0.4% on UPI transactions above Rs 2,000 will be introduced on October 15, impacting person-to-person transactions and small-value payments. Lahiri emphasized that businesses must adapt to the new reality, suggesting that paying a small fee is part of doing business, much like paying for a cheque book.
The decision to introduce the MDR has drawn criticism from traders, shopkeepers, and political parties, who term it a "Modi Tax." The government claims the MDR is introduced in the larger interest of the UPI ecosystem to enhance safety and security.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
