Why UPI should NOT be FREE?
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- čas přidán 12. 07. 2024
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We've all used UPI and know how convenient, secure and quick it is. Rightly hailed as one of the best deep-tech innovations to have come out of India in this century, the success of the UPI model has made countries like France and USA study the financial payment system, with some like Nepal even adopting it. But a major reason behind UPI growing by leaps and bounds over the last couple of years has been the government's decision to make it free. It has made UPI the undisputed first-choice for millions of users and retailers across the country. But what if I tell you that UPI shouldn't be free, because in the long-run, making UPI free does the system more harm than good. In this video, we'll find out why UPI shouldn't be free, and if the government was to reverse its decision, what it would mean for users like you and me.
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00:00 Introduction
01:29 How UPI Works?
02:00 5 Step Process
03:16 Pros
04:37 Pro - Access to better data
06:13 Pro - Cash is expensive and insecure
06:57 Pro - Cash drives a Shadow Economy
07:29 Con - Unsustainable for banks
08:11 Con - Unsustainable for payment gateways
08:50 Con - Stifling of growth and Innovation
09:23 Solution
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Hey mohak aaj tum pehali baar muze galat lag rahe ho
Agar aap State bank of india ya fir HDFC or axis in banko ka upi fail ho sakata hai per mera aaj tak bhi paytm payment bank
Ya koi bhi digital bank hai in banko ka upi kabhi bhi fail nhi hota chahe to dekh sakate ho
Manalo government ko isa ke wajah se 1 sal me 60k crore isake 10x to india me corruption hota hai
Upi se black money kam ho raha hai kyoki bhale hi merchant cash me lena chahata hai lekin customer to bhai online hi payment karana chahata hai
Isiliye black money ghat raha hai
UPI should be made free for small transactions upto 10k. For higher amount a flat fee should be levied.
SBI ka upi is worst. Their servers are not responding all the time.
GOD!!!
One case is enough to destroy everything
Icici bank charges ₹5 + 18% gst 😡 for every upi transaction.
Why it should be free: It’s replacing physical currency for which we didn’t pay any charges in the first place.
Nope, you're paying with your time and attention to secure your cash assets.
@@samyaksheersh712 what if we used 100% of our brain - 100% -------
@@epedso4417 😂😂
What an Indian moment. Yes you did not taxpayers did. It takes money to print store and distribute money. As well as replace destroyed notes.
@@Myanmartiger921
Hume bhi taxpayers me aate hai😬
Good to see that almost everyone disagrees with Mohak here.
UPI is a powerful system because of strong network effects. If UPI becomes paid service, lot of senders and receivers will leave. That will weaken whole UPI ecosystem.
Just like banks didn't ask for cash handling fees, they shouldn't ask for UPI fees (which costs bank way less than handling cash).
but there's a problem in India, if something is free there's a huge competition in getting it and if something is paid most ppl will try to avoid doing it.... idk if you got my point but it can be done in the way mohak told...
Everyone agree and disagree's you can't blame him
@@boombeachindia3060 that is true and the major reason is per capita income in india
Mohak , pagla gya hai.
we should privatise roads to get rid of a few plot holes , then electricity , abolish government hospitals and schools , courts have lot of back log , reliance and paytm can start a few courts which settle fast , also we have a lot of poor people they dont pay taxes , we should sterilise them at least, if not use concentration camps like in assam .
There’s no guarantee, even if we pay charges the UPI will have stable servers
Exactly
Exactly 😢
I am an UPI user for more than 5 years. Yes, there are bank server problems specially with SBI bank but we cannot ignore the fact that UPI is a revolutionary payment system which has brought in a digital payment wave in India and now across globes. Real time payments are such a bless with upi, also it helps in keeping an account for your payment histories which is small advantage but its a real problem while dealing in cash. So, please dont make such unviable comments on which you dont know the ground realities of. Also, the case you talked about, during night time SBI bank undergoes daily maintenance due to which upi doesnt work. Maybe she shoulf start using wallets like paytm, phonepe, amazon pay.
I have no hate for this channel but didnt expect such content from you Soch team.
Thank u. Hope you take it positively.
His latest video was also based on half baked information. It doesn't seem like same YT channel I subscribed lastyear.
SIr, I don't think you watched the whole video. He acknowledged all of the concerns you mentioned here. Maybe watched the whole video instead of ego boosting yourself. I am sure however much you watched you were watching with a mindset that kept saying "arreee yaar asa nahi...uska samaj mein he nahi ara ha
@@Codephile Why are you guys so quick to judge?
Don't say anything if you don't know about the "ground realities" sounds like "tumhe kuch samaj mein nahi ara hai"
@@zanishani2217 quick to judge ? I had read studies in depth. It take months to study them properly, and make an informed opinion. If you don't use internet to learn something new, you're fooling yourself
When you compare the cost in printing more currency notes, handling that, the cost of upi is minimal. As well as , failed % of transaction in upi is very less.
I agree 🙏🙏🙏
Cost of printing money is one time , cost of UPI (depends upon no of transaction).
@@kenokyu7227 can you explain how cost of UPI transfer for 10,000 is more than transferring 1000
No matter how big the UPI has become, even then as many notes have to be printed as much as the economy is.
How can you compare cost of printing money with UPI 😂. UPI is not a digital currency like crypto.
If they start charging for all transactions there is definitely going to be a huge downfall of using the Upi. Because, small transaction amount can be handled with cash and large transaction is going to be anyways be operated like before (bank transfers / debit card pos)
I think UPI should be free
Disadvantages are few
Advantages are many
Exactly
I'll just start using cash like we used to do
Yaa exactly
Yes i also think printing money will also cost so much that may be equal UPI giving cost
maybe the cost will be applied only on big amounts.
I believe the advantages outweigh the disadvantages. UPI is so revolutionary because of the free transactions. This is what sets it apart from American payment apps. UPI is extremely beneficial for the economy and the government, so they should support the costs of the transactions with tax money. UPI has the potential to be ingrained into the social structure, we should not hamper that. Also, the part about mega corporations having to pay a fee, the government can tax them higher. People have been crying out to tax them more.
These multiple videos on UPI & free electricity have begun to show me Mohak's ideological leanings. Not long before others understand it. There's a need to show more of the other side of the coin
True
Agree
This is the first time I've to say that the first example Mohak gave was utterly stupid. UPI services never told that you don't have to hold cash. If you can't manage money it's totally your fault. No service can save you from this.
Yes your right but many time auto guy or shopowner may not have change so that time it may help
True.
Absolutely right.
He has pushed terrible takes multiple times. However he's somewhat right.
Government won't be able to uphold the infrastructure and eventually it's going to collapse.
Second actually
Why we should always dependents on UPI...We should always carry cash in case of Emergency...n we should always use UPI from 2 different bank accounts...If one's fail..we can use other
Ya this brainaic forgot to mention that we can carry some emergency cash always with us.
@@jeevan88888 ya
Same here use two bank account if one fails i use other
I admire most of your videos because you discuss both positive and negative aspects of any issue AND leave up to viewers to decide which one is better WITHOUT passing your personal opinion. Let it be a channel which encourages viewers to "Soch".
That is exactly why I 'liked' the video, even though I may necessarily not agree with his points sometimes
UPI is India's biggest innovation in Information Technology and the internet of things. UPI must remain free no matter what happens or we have failed in free fair & transparent digital payments in the world. UPI is the way to promote RUpay cards used to link bank account in UPI all over the world. UPI will remain free PERIOD. No debate on this.
I do not agree with this. Women's safety have nothing to do with UPI Transactions.
Personally i have never had a failed UPI Transaction although it happens for other users.
Keeping little cash along wont do any harm & will avoid such situations.
Yes there have been transaction failures for me...
Yes exactly charging every user for women safety is ridiculous. It's so foolish , if she was carrying cash they would have robbed or mugged her anyway. The solution is utterly foolish
@@ashishsunny7963 so is UPI now responsible for women safety? She got stuck in that situation because of herself;, women safety is something the gov should take care of and not UPI
You are very lucky to have never experienced UPI failure..
Correctly said , all technologies have their drawback, it's the woman's fault, to keep always some cash in hand
Always have a back-up
90% payments get fail due to low internet, 5% by service provider like paytm and gpay. dont blame banks all the time.
Yeah exactly, i have personally never experienced payment failure due to app's fault .
Jab fasega tab samjhoge .
Tab hosiari nikal jayegi
@@itsd2388 Kyon aapki payment fasi huyi hein kya?
@@itsd2388 isiliye cash hamesha rakhna chahiye apne paas.
wrong statement. I have seen many failures only due to one bank repeatedly. In the same time, my other accounts were able to transfer the money.
It happened with me as well. My train arrived at destination at 3:30 in the morning. I waited for 1 hour at railway station before taking an auto. But when I reached home and paid money ,the transaction got stucked. I had cash with me so paid the auto driver. But then he told me that he got the message of credited money. It was kinda chaotic. But the auto driver was an honest man.
It happened in Patna.
8:58 Ashneer Grover be like : ruk Tera doglapan nikalta hu 😂😂
I was about to say this
UPI should essentially be free. Payment apps and banks can earn by giving loans through customer data or any other means.
Thing is UPI being free should be decided by Market itself. Government making it free deliberately is going to cause problems.
Are you out of your mind? Selling customers data is that a joke for you. How risky it could be you cant even imagine.
Same question why would they invest that into UPI infrastructure which is giving them zero in return 🤔
@@shaikh6231 when he said about selling data. go to good eye doc for checkup
Banks have higher deposits because of UPI as people are spending directly from bank account instead of withdrawing money. This is benefiting them hugely.
But the money can still be transferred from bank account to merchants bank account which could be different
Lol comment section proves that people don't understand economics and have become addicted to free UPI
Govt is also paying banks for maintaing upi infrastructure
@@johnsamuel1999 not really. The money is still going from one bank account to another bank account. So overall effect is less cash in system and more in bank accounts.
For which they are paying you consideration
Are you suggesting charging them more?
1. UPI autopay has become an additional source of revenue for acquiring banks
2. UPI international has mdr and has financial incentives in place for all the members of the UPI ecosystem
3. Looking at SBI might give a wrong idea. Sbi is there in the issuing business but acquiring business is dominated by banks like axis, icici and HDFC who have good service compared to sbi
4. Credit on UPI will most likely have mdr otherwise banks will never move credit to UPI. Maybe it will be restricted to high ticket transactions.
Perhaps if you actually calculate the cost saving on cash management: atm, small merchants maintaining cash, reduction in cash on delivery etc and the additional financial data generation leading to better Targeting, the net should be overall positive for the fintech ecosystem.
P.S.: If you want good success rates at merchant checkout use pay later solutions like Simpl 😁
They charge like 25 rupees per every 1000 rupees you withdraw from the ATM. Now if UPI also stops being free it would be really hard for people.
I mostly admire your research, but this time I have to pass.
being an MBA, I can see the larger picture. If anyone is concerned about MDR, then no charge is the solution.
if it's an infrastructure-related issue my suggestion would be, to link upi with GST, especially with IGST. This way merchants would have got upi availability by default.
I don't think charging it to merchants also helps. In india this would disincentivise users from using it.
In such a case I would prefer credit card reader over UPI
@@adityask277 that's d point ...don't charge the user ..charge d marchant ....in gst by default ...
U know a large portion of shopkeepers (mainly sole proprietorship) don't actually pay gst .... This could be d reason they might prefer GST....
@@niteshmohandas4649 then merchants may stop accepting money through UPI
Who will fund UPI development?
Naah Mohak, this time i respectfully disagree. UPI has been appreciated worldwide for a reason. For a system to work in India it doesn't have to be flawless but adaptable.
Yes you are right
If you had watched the entire video then you know the solution he gave this issue. And the solution is people friendly..
I think you'd not seen the full video, and commented just by seeing the title. The solution is, UPI will be free for normal citizens and small retailers, and the big orgs. like Amazon, Flipkart have to pay some fee/tax to this ecosystem so that banks could get more money so that they could build infrastructure on this, and make it more strong.
@@mansishmahakul3052 If that were to happen, the most likely result would be the retailers shifting the cost onto the consumer as some sort of "service charge". In the end they could even make a profit off this "service charge". This would make a lot of people less inclined to use UPI as an alternative to cash money
@@GintokiSama This thing will not be valid for normal consumers like us. If such service charge is being taken from the companies bank account, which have huge profit margins and generates large capital. This must be implemented on businesses or firms which have joint venture, and the service charge should be paid on behalf of the company's account, not any individual.
Most people didn't get the concept of charging for UPI transactions.....Mohak's solution at the end is a good solution where, for small retailers UPI will be free and billion dollar companies like amazon and flipkart should pay an amount for using UPI. Normal people are not going to get affected by this. It's the big companies who have to pay a fee for using the service. And most importantly anything which is free is NOT sustainable in the long run, it's good for short term growth. So, the government will charge a fee for UPI services in the future to make it sustainable and more accessible for people as Mohak said that smaller banks which serve the rural ecomony of India have a high failure rate of UPI transactions because they do not have any incentive to improve their service since they are not earning anything from this.....SO IT'S COMMON SENSE THAT UPI WILL NOT BE FREE IN THE FUTURE....otherwise payment service providers will start charging convenience fee
Bro, those big corporations will charge us for those transactions as well, it's a loss loss situation.
The moment they charge us for using these platforms, 99% of us will happily go back to cash.
I disagree. I see UPI as a replacement for cash transactions that i do on a day to day basis.
Normally many hotels/shops give bills that have no gst number. So i am guessing they are evading tax payments.
Shifting from cash to UPI means there is some method to detect cash flow into such owners.
Many a time UPI ends up being hung up, cash gets debited but payment doesnt succeed. Payment s fail if apps arent updated or if the new update is buggy. Still I use UPI because i like to promote digital India.
Charge me for UPI transactions and i would happily shift back to cash.
Don't take him seriously mohak Mangal is a stupid liberandu
I just to keep a point here 80% Indian People use UPI because It is Free and Easy To Transfer from Rs. 1 to Rs. 1 lakh and most of time UPI is used for Low Funds of around 20-250 rupees and If it is Taxed or made No Free then All Digital acceptance by Small Vendor will Leave using UPI as they used to During Credit Cards payment which comes with 3% fees And CASH TRANSACTION will increase Heavily
True most of us use upi for small amount of payments and use cards for heavy purchases.
they should add transaction fee for more than 10k rupees
@@asutoshghanto3419 valid point,but people can transact 9999 for 10 times.
If fees are less like 10 paisa per 100 ruppes. Then people will pay
@@trilliondreams9048 jor jor se bol kar sabko scheme bta de
You can do a small thing as a backup in case if your bank cannot complete the transaction just do the kyc verification & keep some money in the wallets, wallet transaction is always successful. I keep 500 to 1000 Rs in my every upi wallet.
The thing can be done is that there can be a small charge e.g maybe after 50, 100 or 200 transactions. And for foreign entities a bit less amount of transactions.
Remember, the more transactions are done by UPI, banks also save on the costs associated with physical money. Why don't they channel that into improving the UPI infrastructure?
Secondly, even if they are allowed to charge for UPI transactions, what is the guarantee they will use it to improve UPI infrastructure and not to reward shareholders?
I agree
UPI is free. Also there were lot of rumors about making non free. It should be free.
Also if that woman feels unsafe then I can't help. It's government's responsibility to make environment safer for women
Also SBI is a govt bank after all. Try it with other banks. Including other govt banks. It works
yes. goverment is responsible for everything but you do nothing.
Lol yea it's a whole different thing
I had an account in PNB, it transacts through SBI, but often fails in the transaction irritated me. So now I have an account in Axis, I never experienced UPI failure again
Suppose u put ur money in wallet and wallet stolen.
Then does it mean wallet is not trustworthy.
UPI is good but I carry. Cash too for emergency
Yeah exactly giving a stupid example abd blaming upi failure for any other wrongdoing. Every technology has some flaws and may even the most sophisticated technologies can fail while handling such large number of users and data.
The solution that you told about in the ending was really good. Nice work man.
I can understand the cost of printing and managing money for the government. The same applies for banks, and big retailers for managing money. What about the cost Bank has to incur when you deposit/withdraw money. I believe there is no cost they are charging. There can be a cost on the retailers based on their yearly turnover. And the retailers do get the option to charge the customer just like the railway charges a convenience charge when booking tickets. Just a funny thought..... UPI transaction failing is like the vendor not accepting a torn or a soiled.
🌟Video Idea : How to Fix the state Which people say is impossible to fix : BIHAR
Prasant kishore is also doing it
@@sumitdwivedi008 yes by giving suggestions to give freebies to gain voter base instead of building industries and infrastructure.
Unless it's free education or affordable Healthcare
Bihar ka kuchh to karo yar ,
Send one more yogi like person to bihar
Koi infrastructure bnata hi nhi hai Bihar mei...
Bihar kabhi nhi sudhar sakta jab tak yaha ke backward class ko education na mile aur wo apne jaat ke neta ko CM na bnaye(unless ki wo qualified ho aur productive ho)
I think it has more advantages than disadvantages , although I myself have faced failed transaction issue but it is like 1 out of 100 times . Also I think most of us use and should use more than one app for upi transaction so that failure in one app can be covered by other apps.
Yeah
But if issue is in your bank..... ...
Then other apps also fail
The only solution is to have atleast 2 account in different banks so incase your 1st bank server down you can pay from another one. I also faced payment failed issue many time but my backup account always worked on those time.
@@akhtarshaikh997 ohh that's a great idea actually
No.
US citizens fund the entire operations of GPS navigation system if we compair to that I don't think spending tax money on UPI is such a bad idea
What is the source for 2.5 Rs cost for 1000 Rs transaction?
In my opinion, its approx 0.02 Rs per transaction irrespective of the amount.
See if you want a cashless economy then you need transactions to be free. I totally disagree with you on the customer paying for each transaction. This will switch them back to Cash based economy which we do not want for many reasons. Also, don't cash also generate a maintenance cost. So why is UPI should be charged only? By this logic, we should pay for every cash transaction too. Because it takes money to create, distribute and manage cash. In my opinion, should be done in banks and government needs to come together to make sure the transactions do not get failed due to infrastructure issues. You might think this is a very expensive thing but from my experience from IT infrastructure background, if this is done by a third-party company then this would be very cost-effective too. FYI, Think before speaking things like this.
Are the banks involved in a cash transaction between you and the shopkeeper? Then ofc there won't be additional charges there. Just like in an online transaction other than UPI, you always pay additional transaction fees, coz the banks are involved, then whats the problem of not paying the same in UPI, where the banks are involved too?
Why would a bank want to depend on a third party infrastructure other than it's own if its not making any profit?
Upi can be considered as extension of banking services for which we already pay by accepting a abysmally low rate of savings interest while bank in turn lends at sky rocket intrest rate
Banks and fintechs are just crying wolf to make some free money
This is public infra and even govt can support if need be
Good point
But anybody is free to invest their money wherever they like... you aren't paying the banks this way, just saving in a risk-free environmen (considering the bank won't fail).
Even credit cards and debit cards sometimes fail in transactions even though they are paid services. Paid service doesn't equate to a perfect system. Even people decline Cash sometimes because they don't have a change, or the note is torn, or they don't want coins. etc. No system is perfect. Also, Now there is an option in UPI to switch between banks. You can even use another number for another UPI app if you want. If you are stupid enough to rely on just one mode of transaction, then honestly, it's on you. If you start charging merchants for UPI transactions, then they transfer that cost to customers by increasing the price. Just try buying something from a dealer via credit card and then by cash. You will see the difference in price.
0:45 UPI Vo Bhi SBI Se😂😂...Mera to mostly bank (SBI) ke working hrs me UPI chalta hai par baki ke time Server down ka issue hota hi hai🤦♂
This is not the right time for making UPI non-free, not until maximum (30-40) foreign countries adapts our UPI system, since we have lot of other competition in global markets like UNION PAY, VISA, MASTERCARD etc. We already defeated them domestically and will win the global market soon !
Same can actually be said for ATMs. Banks have no incentive to ensure that ATMs are working fine when they are making no money from it. 5 free transaction per account means most people are not paying ATM charges.
But you are atleast paying annual ATM charges
@@siddharthvishnoi1489 ATM machine cost/Security cost/Ac cost/Server cost/cash deposit/Rent...all those charges will go for it...UPI is far better than handling ATM...Banks can even see our spending pattern using UPI data..to use register UPI, debit card is necessary...so they r charging for it already
Upi apps Credit card jaisi service kyon nhi use krti.. unke pas data v hai logo ka aur wo aise me intrest v le skte hai... ntw nice video
Either e-commerce sites pay some money to banks or banks charge a particular yearly amount from their customers just like ATM charges.
Considering the incident where UPI didn't work. We should definitely have cash in pocket even though we use UPI. We cannot fully depend on UPI Transaction which can fail due to several reasons.
Yeah we should always keep some cash with us
First thing brother, there is no fault of UP I in this If the transaction fails, it is only the bank's fault.
Rightly said, just keep a little cash.
Use crypto instead upi
Even in those cases you can just have some money in your digital wallet and you'll be fine.
According to me government should bear the cost as if more online transactions will take place then the demand of cash will decrease
Aur cash bnane me bhi to kharcha lagta hi h na.
lets reconsider a second case for a story in a beginning !!
let the girl did not have UPI !! It was heavily raining and she is in auto
now at the time of paying money , if the money is wet becos of rain !! Can you take this point as solution that notes should not be made of paper and made of some better material polymer and for that we pay 0.1% of charge to the RBI?
mean why cannot we be less ultramordenize and keep a 500 rupee note in your backcovver of a phone ...😶😶
Disagree, UPI worked and grew because it's free. If people are asked to pay fee on transactions, they will go back to cash. That's the reason credit card doesn't work even in big cities like bangalore where most of the time merchants will not accept credit cards or ask to cover there 2% surcharge . Regarding the autowala story, it's always better to carry some cash or money in paytm in case if upi fails
There are few flaws with this video .
1) It isn't discussing about the introduction of Multiple UPI's . Which is a process where if you transaction fail with one bank e.g SBI , then you get directed to other banks like HDFC , AXIS etc.
2) This is not a win-win situation , what do you think e-commerce companies will do when they are charge with this fees, they would include it as one more for fee the sellers on the website. Which could mean two things, 1) Either seller bears the cost or 2) Seller includes that fee charges in the selling price of product, which would mean that customer will pay that price. At the end ecommerce company would never pay this fees directly or indirectly.
Tera kon sunega 😂 - RBI to him
also we never knew what happened to that woman
Well said
Just got my first bank account today, and gonna start a UPI account too.... what a timing for this video.. thanks Mohak😊
I'm not sure if agree with you on this.
Yes, UPI doesn't work sometimes but in these 3 years it happened 4-5 times max.
Edit:- for that woman's case, people using online payment should also understand that they need to keep 200-300 in the digital wallet also.
Who said UPI is free? We pay bank debit card charges(around 250 per year). And by using UPI we don't swipe debit card anymore( Atleast for me).
Also Government is saving money in printed money's circulation, management and transfer ( as he mentioned in the video).
UPI should be free.
Right bro
Debit card existed even before UPI and that time customers paid annual fee for debit cards
Mohak - UPI should not be free kyukyi kharcha aata h
What mohan does not tell is government ki responsibility h public welfare karna janta k tax k paise se
UPI should always be free, no matter how much the amount, otherwise people will revert back to 1) NEFT/IMPS 2) Cash and the cost of handling cash and corruption will increase and the growth rate of digital India will go down.
Govt and companies should have other way of monetizing on UPI
It also happens with me many times. I also have bank account in SBI. And it fails my transaction at critical times. 😂
H bro mere sath bhi jab cash nahi hota tab ho hota h
I don't think so Mohak is right at this time.Their are more advantages than disadvantages.Mainly it make major decreases in cash culture of India.
You forget about cost of printing generally 1 lakh rupees of 100 rupee notes need 1700 ruppes so I think government can easily spend some of the save money on upi infrastructure
Nah Mohak, this time I respectfully disagree. UPI has been appreciated worldwide for a reason. For a system to work in India it doesn't have to be flawless.
Mohak, Just by the fact that you are rich, doesn't means everyone is rich
Bro, it should be free...
Because when RBI issues money and ever any bank charged for the maintenance of money or printing...
Like this UPI should not be levied any charge for maintenance
But we are also saving the money which were early used in printing cash.
When the UPI service providers are earning from our data and advertisements then paying extra for the upi payment doesn't justify at all
Mohak, I think that you are wrong here.
I know that for uninterrupted UPI transactions there is a need to update the UPI platform time and again and for that it requires money. But I don't think that charging from the customers to pay is right, its like killing a golden goose. Its the mentality of us Indians to use the services till they are free. The moment if even its being charged a single rupee, People will try to avoid using it.
The cost of Printing Currency notes in 2015-16 ( the year prior to Demonetisation ) was Rs 3421 crores. And the cost in 2017-18 ( the year after demonetisation ) was Rs 4912 crores. And that's just the printing cost. Handling, Transportation and Storage of the currency notes also increases the overall cost.
If the UPI transaction increases by this pace than that time will be near when the currency notes in circulation would become the half of what it was in 2017-18. just imagine how much the government will save from it. If that same amount is invested in strengthening the UPI framework it would be a step taken in the right direction.
And it was just one thing. just think about the money banks are earning because of the financial inclusion, even the younger generation in villages are using UPI. UPI has really played a key role in financial inclusion and its accepted by everyone.
UPI transactions have played a key role in the increase of GST and other indirect tax collection as earlier since there was cash payment so it was not well accounted but now since the UPI transactions are on an exponential Rise so the GST collection was also phenomenal. Compared to August 2021 there is an increase of 28% in GST collection of August 2022. 28% is no joke Mohak, if you even adjust it to the inflation than too its a really high increase. Just imagine if the government gives a fraction the the increased GST collection for the strengthening of UPI network.
Lets come to the point when you said that its a loss making business for Gpay and Phonepay. Whenever we do any transaction they give an ad when the payment is complete on that payment page. And by these advertisements on every transaction they can earn lot of revenue. even you can see on their homepage, there are advertisements of many companies there.
I think that it would be really foolish if UPI transactions are charged even a single paise.
Ye dhruv kathee ka chota tatta h janta ko fictional story suna k gumrah krne ki koshish krta hai
I work in NPCI which made UPI and I am very proud of it 😊
if they start transaction charges, there will be a huge dip in the usage of UPI. Because small retailers(sabjiwalas, taxi drivers, autodrivers, etc.) have very less profits so they'll switch to cash simply and large scale users will switch to bank transfers. It depends on the tax slabs that how much it will dip but it will dip for sure.
in the end he said that upi should be paid for big retailers and free for small businesses, which seems to be okay
@@mastergamerz5666 yes, it can be applied on transactions of certain amount of money
@@mastergamerz5666 Big retailers will again charge from customers. Nobody is doing charity here. People will prefer card payments and cash for those transactions.
He didn't say the consumers has to pay for UPI. It's the merchants who need to pay. That too really large players like Google, Paytm, Phonepe and all. Not sure why people didn't get his point!
That's why when we go to market, we always keep some cash.
Online payment can't be trusted always.
But there is already daily 10 transaction limit on UPI.
Bhai if UPI will cut a percentage of money. Please will start using the cash again. Cash will say forever. In one form of other physical denomination will always prevail.
On the other hand, upi can be proved to be a savior when cash has run out (my real life experience). So, being a woman I can say upi has saved me many a times, it kind of made me feel safe at times like I said. If upi isn't free or at least very convininet for the small vendors they won't use upi at all, then I'm afraid upi won't be the same again.
Most people Who use UPI are middle class people Who make sure They can bargain even the last rupee. Imagine charging even ₹1 for every ₹1000. They would rather walk half an hr to withdraw the money and pay it in cash rather than having to pay a ₹1 more. We are a cost concious economy and We tend to gravitate towards cheaper stuffs if the output is the same. UPI will not die as soon as it charges, but will surely loose its appeal and the market as individual payment platforms may introduce free alternatives (like Paytm, Gpay and Phonepe).
Banks already make huge revenue by charging neft and rtgs.. No need to charge money for doing nothing
Nope. UPI is public good and must remain free. Make UPI better by providing transaction fee from government funds
If provided from govt funds those funds have to come from your taxes. So it's never really free
@@MARKCRASTO Bad reasoning.
@@MARKCRASTO yes, that's what we pay taxes for. To get public services.
Very good take. UPI can be charged for big businesses for sure but never for common people and small businesses.
tu ullu hai..big company o paisa fir6e buyer se loot lega ...chiso ki daam bara-kar
Do you think big business use upi for their transaction?
Big MNCs run on checks.
Arrey bhai someone buying even a fan or 2-3 textbooks on Amazon can cross the Rs 2000 threshold but no way does that make the buyer an "uncommon man".
"never for common people and small businesses" sounds nice but how can you implement that?
No. First, govt shouldn't create different rules on basis of business size.
2nd, If govt starts charging big businesses, they will demote use of UPI leading to weakened UPI ecosystem.
firstly, hats-off to the the girl going out alone in the late night in Rape Capital of the World. She was inviting rape and murder. Anyways, she could have paid cash by borrowing from the destination (home or whatever). She must have known already that SBI upi transactions are unreliable. She got uncomfortable because "she will need to call the few men bhaiyya" to save her "izzat". It's law & order issue in India, where innocent are crushed and corrupt people rule, and not UPI payment issue.
I watch your videos regularly, and this one is good too.
But I don't agree that random failure is the reason to make UPI chargable.
I thought this since months too, it should not be promoted for 5, 10 rs transaction because it increases load on server and transaction mechanism.
A very shall charge will help make it being used for useful time only, just few paise as upi charge
Maintenance fee for UPI Infrastructure/motivation is a welcome idea.... everything else you said is great too.... thanks for enlightenment.
But in the case of Delhi woman, if her mobile had temporarily stopped working or there was a network issue....who was to blame then?
@FILO EDTECH NEWS AND OTHERS Swipe my Credit card.....look there can be issues and some kind of UPI fee is a welcome idea...instead If I had Rs.10000 cash all in Rs.2000 notes and all of which turn out to be counterfeit then who is to be blamed......there can always be issues but u can't say I'll NEVER TRUST THIS PAYMENT METHOD AGAIN BCOZ IT FAILED ME AND CAUSED ME TROUBLE
@FILO EDTECH NEWS AND OTHERS Even credit cards and debit cards sometimes fail in transactions even though they are paid services. Paid service doesn't equate to a perfect system. Even people decline Cash sometimes because they don't have a change, or the note is torn, or they don't want coins. etc. No system is perfect. Also, Now there is an option in UPI to switch between banks. You can even use another number for another UPI app if you want. If you are stupid enough to rely on just one mode of transaction, then honestly, it's on you.
There are few issues in charging UPI even with your idea of charging large merchants.
1. Npci uses same technology in backend as imps transfer, large payments might just opt that. If it's payable(some banks already charge) even NEFT will gain traction as it takes roughly 2hrs during RBI work hours. One benefit might be npci server traffic would reduce.
2. Making large vendors like Amazon pay would backfire, this approach is only possible if UPI enters credit card sector, what is there for Amazon to use UPI and not go for Visa full-on. Already Visa is lobbying against UPI due to its shrunken market space and they can influence companies entering via FDI.
The only reason UPI thrived in India is because its free. If you start charging for transactions, it will be like taking a back foot. I feel that Indians are largely still very conservative in the way they spend, thanks to our widespread middle class values.
In this video many points have memes.
Those memes break the flow of video.
UPI should always be FREE otherwise customers will never pay the extra charges and merchants will stop accepting UPI if they have to bear the charges. These days even the small vegetables vendors accept UPI because its Free, please do a through research before making these videos. Looks like a paid sponor video by these Merchants so that they can justify UPI charges later. The better solution is to improve the Infrastructure
Yup, I only do UPI payments 98% of the time and I barely carry cash. If UPI start taking fee for customer to merchant I'd directly abandon it. They can start making money from other segments in the UPI app like movie tickets, electricity charges as convenience fee etc but charging money on normal transaction will be a disaster
Bhai isne sirf bare bare company ke liye UPI ko free Dene ko mana kiya hai. Bat me logic to hai
are bhai esse kaise modi ko badnam bhi toh krna hai
@@MD-mi3nl yeto mevi karunga agar UPI ham se charge lena surukardeto
@@akashmallik6237 these big companies will then either stop accepting UPI or start charging convenience fees on every order. Are you ready to pay ???
But sir we also reduce the printing cost and paper cost. What is your opinion?
Banks are paying but they are not printing money.
@@maramnikhilreddy424 RBI toh chaap raha hai naa.... warna purane phate note ko replace kaun karega...???
@@maramnikhilreddy424 100% of brain use 😂
@@jatinsahoo458 true RBI is printing and bearing the cost not the banks right??? Now banks are asked to invest in digital infrastructure. So, cost earlier is invested by RBI, now cost is beared by banks both pvt and public.
@@maramnikhilreddy424 your comment is irrelevant, other banks get their notes from RBI
The government already has taxes for transactions that happen anywhere, UPI is not exempt. So there is no point for an extra fee if government already has taxes. If they want money they can raise taxes
One thing I have noticed here that even though everyone is disagreeing with Mohak, they are using logic, and they are not cursing or shouting at him.
Things like these give me hope for the humanity.
If UPI transactions are charged, then most of the transactions will go with cash or wallet to wallet. As PAYTM users are increasing, they will make it free within app. So, huge loss can be seen for apps like GPay and phonePe... All small and medium merchants will stop using all digital transactions and come back using cash. It will become just like credit cards...
Credit cards are there, but it is not found everywhere, same way UPI will become...
I think phonepay has more customers and users than paytm.
New York Times said upi is biggest phenomenon for india after Independence. Charging small vendors will ultimately doom entire upi and would have fate like kiosk-card transaction. Approach has to be balanced between giants like Amazon and roadside vendor.
I understand what the comment section but the "I don't pay my bank any charges for physical currency" part is not entirely accurate. You do it in different forms. On the deposit side, the minimum balances in Savings account and maintenance penalties charged if we go below our limit is one. On the credit side, our interest rates include operational costs of banks, which again includes all this.
Also, if I remember it right, the video suggests something like restoring the Merchant Discount Rate, and not charging directly from the users? And specifically from large merchandises? I haven't formed an opinion on whether UPI should be free or not, but the comment section makes me wonder if the particular section about charging is understood wrong.
Mohak Bhai aap please other countries k bhi reference le k video ko explain kiya kijiye !
One thing which you missed out here is the huge potential for financial products such as loans and credit offer towards the buyer and sellers using the UPI data. Otherwise no one would have wanted to invest in UPI infra.
My point is that these companies can sell user data which may be much bigger revenue stream compared to charging the UPI service.
So to avoid a small fee, you want companies to sell your data?
@@MARKCRASTO every google search you do is free. But what you give is your data. You are unknowingly doing it anyway.
I am just saying what is happening
It is more riskier than giving a freaking transaction charge. Let there be no competition. Who cares. Let these 2 players dominate the upi industry. If Its good to common people of india
stupid 😪 Reason Totally wastefull .
just bcz of small reason ..
we can't avoid it's 94-95% benifits..
Yes it's need to be improved according to time..
we can't avoid it.
To grow we need free UPI.
UPI is boost to India'🇮🇳🇮🇳
Some banks like Canara bank put tax on UPI transactions, i didn't knew this thing until i found out i am loosing between 450 to 750 every month for a transaction of 25k . A person from lower middle class family like me, anything like 500 per month is highly valuable. When i asked about this, they just told zero balance account is the cause while kotak and other don't have these taxes. When I got to know this, i completed around 24 months of UPIs, assuming I've lost around 10 thousand.
I believe it should be similar to the tax bracket as the amount that goes up the fee should go up but the rate can still be small yet enough to maintain infrastructure. As per the transaction authorization higher the amount higher the risk so it will be win win
Not 1st but 40th comment! 😅 watching within 5 mins of uploading this one 😃
Loving the storytelling. Flawless trasitions and integration. Just thinking if UPI is using the same model as Jio. Create a habit of making digital payments and later start charging for transactions.
When it reaches other countries, we should give them UPI with a small convenience fee, so that ncpi can raise revenue and use that to upgrade the system or introduce incentives for Indian banks to upgrade their UPI infrastructure.
But this may bring a bad reputation..technically this won't be the same UPI they wanted to adopt
@@KeshariPiyush24 only the companies will pay a small percentage of it. No consumer will be directly charged. At a lower rate than what credit cards charge.
Every service costs. To popularise it governments pay a subsidy/ annuity payments for any infrastructure. Now when it has become popular it is there is a minimum fee for it and as it goes up the s curve the government will completely withdraw the subsidies
If a woman is not safe just because UPI is not working then hell yeah nothing could save us 😒
2:59 Sir is their any document or pdf for verification that bank require 2.5 rupees for 1000 rupees transactions . I had read in marathi news paper (sakal ) that for transactions of 10000 rupees cost around ' 50 paise ' on upi .
But they will keep it free anyway, as they said
Bada retailers supreme court me case karega ke...ke chote retailers se koi charges nahi liya ja raha hain ..
Law sab ke liye same hain chahe wo bada retailers ho ya chota ..
It was bank problem and happens to me often specially in evening time. So i keep some amount in paytm balance and there will not any issues with payment if shopkeeper have paytm scan.