75% traders may not face UPI levy, says NPCI MD & CEO Dilip Asbe
Distilled Policy Brief
- According to NPCI MD & CEO Dilip Asbe, 75 per cent of the 60 million unique merchants accepting digital payments have not seen a transaction above ₹2,000 and will face no impact from the policy.
- A finance ministry official stated that the GST Council is likely to consider granting relief on the 18 per cent Goods and Services Tax (GST) applicable on MDR charges.
🎯 Prelims High-Yield Examination Points
NPCI introduced a 0.4 per cent merchant discount rate (MDR) on UPI transactions above ₹2,000 for select merchants, while peer-to-peer transactions remain free.
⚖️ Mains Analytical & Syllabus Linkages
Examine the implications of introducing merchant discount rates (MDR) on UPI transactions for digital payment adoption, merchant profitability, and financial inclusion in India.
🎯 UPSC Prelims Practice Drill
With reference to the bilateral research and industrial cooperation engagements between India and Germany, consider the following statements: 1. Roundtables held with German research organizations, such as the Fraunhofer Institutes, prioritized key fields including microelectronics, power electronics, and smart manufacturing. 2. Expanding industry-academia innovation networks and collaboration in battery technologies form key components of the enhanced strategic cooperation. Which of the statements given above is/are correct?
- [A] 1 only
- [B] 2 only
- [C] Both 1 and 2
- [D] Neither 1 nor 2
▶ Reveal Official Answer & Analytical Explanation
Both statements are correct. High-level roundtables with German research institutes, including Fraunhofer Institutes, focused on microelectronics, power electronics, smart manufacturing, battery technologies, and logistics. Furthermore, the engagement emphasized strengthening industry-academia innovation networks, science and technology cooperation, and advanced manufacturing capabilities between India and Germany.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.