The Indian government has decided to impose a 0.4 per cent charge on UPI payments above Rs 2,000 to merchants.
Ashneer Grover says UPI could run free for 20 years if Subhash Chandra's Rs 22,000 Cr wasn't approved
A fee of Rs 300 for payments of Rs 75,000 and above was capped for large digital merchant payments. The announcement immediately sparked a massive backlash among the Opposition and a section of fintech experts.
Former BharatPe CEO Ashneer Grover said, “If the government had not waived Rs 22,000 crore for Chandra Sahab, UPI in India could have remained free for the next 20 years with the government’s ₹8,000 crore subsidy”, in a post on X.
“Also, NPCI - which runs UPI has Rs 6,119 crore in hard cash on its balance sheet and pre-tax operating profit of Rs 1,900 crore”, he added.
Grover pointed out that the Indian government collected Rs 1,000 crore in taxes from NPCI last year.
He backed his argument, saying, “India mein koi 5 minutes number Google kar le to doodh ka doodh paani ka paani ho jaye.” (If someone in India spends five minutes Googling the numbers, the truth will become crystal clear, he said).
The RBI transferred Rs 2.87 lakh crore to the government, while listed banks made Rs 4.11 lakh crore in profits. NPCI had a pre-tax surplus of Rs 1,888 crore.
Quoting the figures, Ashneer Grover questioned who was actually losing money because of UPI and what subsidy the government was providing to the system.
Also, he flagged the costs of operating ATMs and managing cash logistics in India, which he pegged at Rs 30,500 crore.
According to the former Shark Tank India judge, shutting ATMs and promoting UPI would be a better way to optimise costs.
Grover said any levy on UPI would effectively amount to tax collection.
He warned that UPI, one of India’s globally acknowledged scientific achievements, could now be sacrificed to taxation.
About Subhash Chandra's Rs 22,000 crore approval
The National Company Law Tribunal (NCLT) approved a repayment plan for Zee Group founder Subhash Chandra, settling admitted creditor claims of about Rs 22,006 crore for just Rs 6.5 crore, roughly 3 paise per Rs 100 claimed.
While the plan was accepted under insolvency proceedings, several lenders said the payout was unviable, though some officials argued the headline “haircut” figure may be misleading.
