The UPI charge

It is strange that at a time when India’s UPI has gained wide acceptance both at home and abroad, a 0.4% charge is being introduced on merchant transactions above ₹2,000. The government says about 96% of merchant transactions will remain free, leaving only 4% to bear the new charge. This raises a basic question: what sizeable amount is expected to be gained from this measure? The answers are not clear.

There is also a risk that some merchants may find ways around the charge. They could ask customers to pay into their personal accounts, which remain free, instead of their business accounts, or ask them to split a large payment into smaller amounts of ₹2,000 or less. Others may simply pass the cost on to customers by raising their prices. UPI has made everyday payments simple for millions. There is little sense in complicating a system that has worked so well.

V. Nagarajan,

Chennai

The proposal to introduce charges on UPI transactions warrants caution. UPI’s greatest success lies in making digital payments nearly frictionless and affordable for everyone, including small merchants. Introducing transaction charges, even indirectly, risks passing costs on to sellers and weakening the incentive to move away from cash. The policy could make UPI seem like a pay-to-use service and encourage Indian businesses to return to cash transactions, potentially affecting India’s leading position in the global real-time payments rankings.

Shreya Sharma,

Bengaluru

The introduction of fees on UPI payments is a retrograde step by the NPCI that could seriously affect the successful digitalisation of payments and the steady increase in UPI transactions. What is the justification for levying a fee when the NPCI’s own data reportedly shows that 96% of UPI transactions are for amounts of up to ₹2,000? There appears to be little justification for meddling with a system that has worked so well. The NPCI must withdraw this decision forthwith in the interests of the general public. If implemented, the measure could undermine the confidence of millions of users in UPI payments.

K. Devanathan,
Chennai

Weaponised space

The disclosure by the United States that it possesses counter-space capabilities, although it has not revealed their nature, could open the floodgates to the weaponisation of space. While orbital bombardment has so far remained largely within the realm of science fiction, the deployment of kinetic or non-kinetic conventional weapons in space could make it a reality. This could trigger an arms race, with space powers deploying their weapons in orbit. At a time when the global space industry is seeking cheaper and more affordable technologies for conducting space missions, an arms race in space could hinder progress towards reducing satellite-launch costs. It could also undermine scientific missions, including exploration and research, as countries divert resources towards weapons rather than scientific advancement.

Kunal Anand,

Bhubaneswar, Odisha