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<\/a><\/p>\nUPI Payment System was the modern Taj Mahal of India .\u00a0 . Scores of foreign dignitaries\u00a0 including in G 20\u00a0 etc were shown this crown jewel where a vegetable vendor in some street could get payment from mobile just by scanning the QR code . You could travel in anywhere in India with just a mobile phone . Cash was truly becoming redundant . This system was superior to any foreign system . In 2025 alone 225 billion transactions were done in India using this free payment system .<\/p>\n
It had enormous potential . By 2026 eleven countries had accepted this system . There is no such well proven and matching system in the world . It could have made sending money to India from abroad much easier and cheaper for NRIs.<\/p>\n
It is absolutely inexplicable, why the government of India has decided to clip this system by imposing an utterly unwanted transaction tax . Seemingly free limit of Rs 2000\/ is really not valid because even a solo mother dairy booth sale is about 30000 rupees a day . All transactions are below the limit . But the booth owner free limit of Rs 100000\/ month is the catch . Mother dairy gives 35 paisa per litre commission on milk and 5 % on rest of the dairy products . So if the mother dairy booth owner will pay 0.4 % tax on sale , at sixty five\u00a0 rupees a litre it is 26 paisa out of the total commission of 30-35 paisa . Same is true of small kirana shops though their profit margins are higher .<\/p>\n
Will he demand cash payment or not ?<\/p>\n
This is the national tragedy . The greatest achievement of the government of moving towards cashless open society has been sacrificed for peanuts . In India, income\u00a0 tax revenue is still about 22%\u00a0 % of budget . In west it is about forty percent . We were moving towards an honest society which this move will reverse . A total expenditure of Rs 4000 crore was saving government far more and was utterly affordable .<\/p>\n
We will start carrying cash in purse again . So we will withdraw say Rs 50000 \/ month cash from bank . This will reduce cash availability of banks and their loan disbursal will reduce . Government can reduce the cash limit but safety of banks will reduce .<\/p>\n
Keeping higher limits for essential sectors like Railways etc is ok . But at the end of the day a question remains unanswered ‘ why government painted its Taj Mahal black ?<\/p>\n
The answer lies in pressure from American Credit Card aggregators like VISA and Master Cards . Free UPI was threatening credit card companies as shopping in India was shifting to UPI . The VISA \/ Master cards were getting a cut from all shopping done with credit cards . Many shops were charging ( illegally ) two percent extra if payment was made by credit card particularly for low margin items . Ru pay card was cheaper than foreign cards . Also payment of profits to foreign card companies was a drain on our foreign exchange . So UPI was like import substitution. Government is making RuPay debit card transactions free . It will partly offset the extra cost .<\/p>\n
VISA \/ Master card companies have been protesting from 2018 first against RU Pay card and later against UPI Payments . But interestingly their profits in India were increasing as the young generation had moved to EMI payment on credit card loans for luxury items like Apple phone . Though these companies do not publicly reveal profits made in India . Indian operation is often linked with say Singapore . Globally their profits are increasing .<\/p>\n
From unofficial estimates the increase in profits of VISA \/ Master card is given below .(CGPT )<\/p>\n
| Financial year<\/th>\n | Mastercard India Services \u2013 revenue<\/th>\n | Mastercard India Services \u2013 PAT<\/th>\n | Visa Consolidated Support Services India \u2013 revenue<\/th>\n | Visa India \u2013 PAT<\/th>\n<\/tr>\n<\/thead>\n | |||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2015-16<\/strong><\/td>\n| \u2014<\/td>\n | \u2014<\/td>\n | \u2014<\/td>\n | \u2014<\/td>\n<\/tr>\n | 2016-17<\/strong><\/td>\n | \u2014<\/td>\n | \u2014<\/td>\n | \u2014<\/td>\n | \u2014<\/td>\n<\/tr>\n | 2017-18<\/strong><\/td>\n | \u2014<\/td>\n | \u2014<\/td>\n | \u2014<\/td>\n | \u2014<\/td>\n<\/tr>\n | 2018-19<\/strong><\/td>\n | \u2014<\/td>\n | \u2014<\/td>\n | \u2014<\/td>\n | \u2014<\/td>\n<\/tr>\n | 2019-20<\/strong><\/td>\n | \u2014<\/td>\n | \u2014<\/td>\n | 944<\/strong><\/td>\n | 125<\/strong><\/td>\n<\/tr>\n | 2020-21<\/strong><\/td>\n | \u2014<\/td>\n | \u2014<\/td>\n | 1,014<\/strong><\/td>\n | 153<\/strong><\/td>\n<\/tr>\n | 2021-22<\/strong><\/td>\n | \u2014<\/td>\n | \u2014<\/td>\n | 1,346<\/strong><\/td>\n | 168<\/strong><\/td>\n<\/tr>\n | 2022-23<\/strong><\/td>\n | 888<\/strong><\/td>\n | 40<\/strong><\/td>\n | 2,188<\/strong><\/td>\n | 233<\/strong><\/td>\n<\/tr>\n | 2023-24<\/strong><\/td>\n | 1,004<\/strong><\/td>\n | 49<\/strong><\/td>\n | 2,812<\/strong><\/td>\n | 334<\/strong><\/td>\n<\/tr>\n | 2024-25<\/strong><\/td>\n | 1,149<\/strong><\/td>\n | 98<\/strong><\/td>\n | 3,355<\/strong><\/td>\n | \u2014*<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n | *I have not inserted a Visa FY2025 PAT figure without verifying the audited accounts; the FY2025 revenue of \u20b93,355.35 crore is reported from the filed financial information.( CGPT)<\/p>\n The Mastercard figures for FY2023\u2013FY2025 come from the reported financial history of Mastercard India Services Pvt. Ltd.<\/strong>: revenue rose from \u20b9888.32 crore to \u20b91,003.65 crore and then \u20b91,148.57 crore; PAT rose<\/p>\n So really it is a baseless complaint but we have surrendered to their bullying . Our government has excellent record of not succumbing on Russian oil or trade deal . So if it has chosen to give up UPI advantage it might be bargaining for some thing bigger . But American appetite is unending.<\/p>\n To a layman it is a surrender to American pressure against our national interest .<\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" UPI Transactions Tax : Unnecessary And Against India’s National Interests , Not The End Of… more |