New Delhi, September 16 (Daily Kiran) : The Communist Party of India (CPI) has strongly condemned the government’s decision to impose fees on UPI transactions, urging an immediate reversal of this policy. The party argues that the Unified Payments Interface (UPI) is a public digital payment system designed for the convenience of the masses, and converting it into a fee-based model is against the interests of the public.
In a statement released by the CPI’s national secretariat, the party pointed out that while the government claims no direct fees will be charged to consumers, practical experience suggests that merchants often pass on such costs to customers. They noted that there is little difference in the cost of processing payments of ₹10 and ₹10,000, making transaction-based fees illogical.
The statement highlighted that the National Payments Corporation of India (NPCI) is already a financially robust institution with ample cash reserves and investments. It has also contributed millions in taxes to the government. Therefore, the CPI argues, there is no justification for turning UPI into a revenue-generating mechanism.
The CPI also alleged that external pressures from the United States cannot be overlooked in this decision. They claim that U.S. trade representatives have objected to India’s UPI and zero Merchant Discount Rate (MDR) policy, seeing it as a barrier for American payment companies. According to the CPI, companies like Visa and Mastercard have vested interests in promoting card-based payments, which would undermine the attractiveness of UPI and RuPay.
The party pointed out that transactions over ₹2,000 account for approximately 65% of the total value of UPI merchant transactions, and these are now the focus of the proposed fees. The CPI accused the Modi government of yielding to U.S. pressure instead of defending national interests.
Referencing Prime Minister Modi’s characterization of UPI as a symbol of “Digital India” success, the CPI stated that compromising its autonomy under foreign pressure tarnishes the country’s digital sovereignty. They warned that this decision would ultimately increase the economic burden on merchants and consumers while benefiting foreign payment companies.
The CPI’s statement also noted that a significant portion of India’s digital payment infrastructure is already controlled by PhonePe, owned by Walmart, and Google Pay, owned by Alphabet, which together handle about 80% of UPI transactions. The party criticized the government for imposing additional burdens on the public and small businesses instead of charging these large corporations fair fees for using public digital infrastructure.
The CPI reiterated that UPI was developed as a simple, integrated, and low-cost payment system and should not be weakened to suit foreign corporate interests. They demand the government withdraw this “anti-people decision” and maintain UPI as a completely free service.
Leave a Comment