Politics has begun in right earnest over the issue of levying merchant discount rate on high-value UPI transactions. Leader of Opposition Rahul Gandhi today took to social media and demanded immediate rollback of what he called “UPI tax”. In his video message, Rahul accused that this decision has been taken because of pressure from US companies.
The Centre clarified last night that no charges will be levied on person-to-person UPI transactions. Only 0.4 per cent merchant discount rate will be charged on person-to-business and business-to-business transactions of more than Rs 2000. For UPI transactions of more than Rs 75,000, the charge will be capped at Rs 300. It has been made clear by the government that merchants must not transfer the burden of merchant discount rate on the common man.
For the last two days, many misconceptions have been spread on this issue. Naysayers say that there could be a big dip in digital transactions and use of cash for most of the transactions may increase. Small shopkeepers, traders and street vendors will be hard hit. The Centre has described all such speculations as unfounded. Till now, all UPI payments were free.
Before we try to understand why MDR was levied, we should understand the vastness of the UPI space in India. Every day, 79 crore UPI digital transactions take place. Every minute, 5.49 lakh UPI transactions take place. This is the world’s biggest digital platform. Last year, 24,000 crore UPI transactions took place involving transfer of Rs 314 lakh crore, a whopping sum! Running such a vast platform is costly. This year, Rs 20,000 crore was spent on managing the UPI digital platform. The entire bill was footed by the government for the last ten years. This is the first time that fee has been levied to recover part of that cost. At the same time, the government understands that millions of Indians use UPI for digital transactions. Nearly 94 per cent of people in India will not have to pay any charge for using UPI.
Where MDR will apply, the merchants have been asked not to transfer the cost to the common people. For most of the Indians, UPI will continue to be free. However, I have a hunch that some unscrupulous merchants may try to pass off the charge to the common man. It is better to wait and watch how the new system evolves from October 15. If required, it can be reviewed. It must be ensured that UPI must remain the world’s biggest digital payment platform. India must not return to the days of cash transactions.
Will Yogi implement UCC in Uttar Pradesh?
The Uttar Pradesh government has announced that a bill to implement uniform civil code will be introduced in the assembly soon. Senior minister in Yogi government, Bhupendra Chowdhary made this announcement. A day earlier, Union Home Minister Amit Shah had announced that all BJP state governments will implement UCC before 2029. Samajwadi Party chief Akhilesh Yadav took to social media to describe UCC as Underground Communal Conspiracy. Islamic clerics in UP have opposed UCC.
Maulana Sufian Nizami, spokesperson of Darul Uloom, Deoband, said people of every religion have the right to follow their own traditions and customs. He said, all religions have their own personal laws and UCC is not required. He alleged that the BJP is trying to polarize voters ahead of the assembly elections. UCC has been implemented in Uttarakhand only, till now. UCC bills have been passed in the assemblies of Gujarat, Assam and Madhya Pradesh. Rajasthan government has introduced UCC bill in Assembly. West Bengal government plans to bring UCC bill.
In Maharashtra, CM Devendra Fadnavis’ government is working on the UCC draft bill. It will get it passed in the assembly with support from ally, Eknath Shinde-led Shiv Sena. However, the path in Bihar is not yet easy. Two MLAs from BJP’s ally Janata Dal(U) have opposed UCC. Deputy chief minister and JD(U) leader Vijay Chowdhary said, ‘there is no need to raise a hue and cry now, we will speak to the BJP leaders when the time comes. Only then will our party decide’. A narrative has been created that UCC is against the interests of Muslims and if it is implemented nationwide, it will amount to interference in the religious matters of the community. Only political parties who need Muslim votes are opposing it.
There is no confusion in BJP ranks on this. The manner in which national politics has changed in the last 12 years clearly shows that leaders, who used to openly support Muslims, who supported overturning the Supreme Court judgement in Shahbano case, who created a hue and cry when Babri mosque was demolished, who openly opposed building of Ram temple, have now stopped pursuing Muslim appeasement policy. These parties and leaders will hesitate to openly oppose the UCC. In such a situation, leaders like Asaduddin Owaisi and Muslim Personal Law Board members are openly opposing UCC. This suits the BJP fine, from political point of view. Assembly elections are going to be held in UP next year and it seems, UCC law will be enacted before the elections.
How Suvendu has changed Bengal?
West Bengal chief minister Suvendu Adhikari has fielded Hasirani Rath, mother of his slain PA, from Nandigram seat which he had vacated after winning from Bhawanipur. Sakharav Sarkar is the BJP candidate from Muslim-dominated Rejinagar constituency where byelection will be held. The day Suvendu Adhikari was elected leader of BJP legislative party, his PA Chandranath Rath was brutally killed near Kolkata. Suvendu has claimed that BJP will win Nandigram seat by a margin of more than 50,000 votes. He said, saffron flag is already flying in Nandigram, and this time, BJP will show ‘Sanatan power’ in Rejinagar. Suvendu Adhikari has organized Ganesh Puja festivals on a big scale this year, ahead of Durga Puja.
There is no doubt Suvendu Adhikari has changed the scenario in Bengal. He openly speaks about Sanatan Dharma, wears saffron clothes, holds saffron flag on the streets, and says in assembly, Bengal welcomes all and respects all religions. At the same time, he warns, those insulting Sanatan Dharma will not be spared in Bengal. People in Bengal like Suvendu’s straightforward and candid talk. For the last 50 years, Hindus had to play second fiddle because parties in power followed appeasement policies. Left parties were the first to follow appeasement policies. Mamata Banerjee also did the same in her greed for 27 per cent Muslim votes. BJP finally became the gainer.