Naveen Seeks Trader, User Protection in UPI Row
Naveen Seeks Trader, User Protection in UPI Row
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Key Points
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Naveen Patnaik made the remarks while responding to reporters after arriving at Biju Patnaik International Airport in Bhubaneswar.
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Odisha Congress leader Sonali Sahoo alleged that the government had used various measures over the past 12 years to extract money from poor workers, labourers and the broader working class.
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Sahoo argued that charging on UPI transactions above Rs 2,000 would worsen the pressure on people already facing rising inflation, calling the measure an added burden on the public.
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Sahoo claimed that companies including Google Pay, Paytm, Amazon, Visa and ATM-service providers had raised concerns with the United States Trade Representative, alleging that UPI was obstructing their interests.
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According to Sahoo’s allegation, pressure was subsequently exerted on the Indian government to end free UPI transactions and introduce charges on payments above $25.
India's opposition is pushing back against new charges on UPI transactions as the government tries to introduce a 0.4% fee on merchant payments above 2,000 rupees. Naveen Patnaik, the Biju Janata Dal president and Odisha opposition leader, called for protecting ordinary consumers and small traders from the policy The Economic Times. The controversy has exposed deep concern that even small charges could undo digital payment progress.
The Finance Ministry says the new fee will barely touch most Indians. Person-to-person transfers remain completely free, and 96% of person-to-merchant transactions stay free The Kanal. But opposition parties argue the charge will burden workers and low-income people already squeezed by rising prices.
Opposition Warns of Burden on Poor Workers
Odisha Congress leader Sonali Sahoo attacked the new UPI charges as the latest way the government has extracted money from poor workers and laborers over the past 12 years. She called the 2,000 rupee threshold an added burden on the public struggling with rising inflation The Economic Times. Sahoo compared the charge to historical taxes meant to punish specific groups.
Charges Could Push Users Back to Cash
Former NITI Aayog vice-chairman Rajiv Kumar warned that even small UPI fees could reverse years of digital payment gains. He urged the government to keep zero-fee transactions for at least a few more years The Economic Times. Kumar's warning echoes concerns that charges will scare ordinary Indians away from digital payments and back toward cash.
Tech Companies Allegedly Pushed for Fee Introduction
Odisha Congress alleges that Google Pay, Paytm, Amazon, Visa, and ATM providers complained to the US Trade Representative that free UPI was blocking their interests The Economic Times. According to this claim, pressure from Washington then forced India's government to end free UPI transactions. The allegation suggests charges were introduced to favor foreign payment companies over India's homegrown system.
What Stays Free Under the New Rules
The Finance Ministry confirmed that person-to-person UPI transfers remain completely free. Merchant payments up to 2,000 rupees also stay free The Kanal. Small merchants certified as eligible escape the 0.4% fee entirely. This protection means about 96% of person-to-merchant transactions avoid the new charge, according to government data.
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