The Hindu Editorial Analysis : 2nd April 2023

03/04/2023

Table of Contents

The Hindu Editorial Analysis

The Importance of Reading The Hindu Editorial: Reading The Hindu newspaper has several benefits, including improving reading skills, facilitating comprehension, staying informed of current events, enhancing essay writing, and more. For individuals aiming for a career in banking, reading editorials is crucial for vocabulary building. In this article, we will examine today’s editorials, provide practice questions, and highlight important vocabulary words.

UPI on e-commerce.

Imposing a digital facilitation fee for UPI transactions on e-commerce sites and using the resources to make UPI transactions free for merchants on all offline platforms would promote the shift away from cash, according to a report.
The report said a 0.3% fee on e-commerce merchants in the nature of a digital payment facilitation fee on UPI payments would generate Rs 5.000 crore in 2023-24.
This would make UPI more viable in monetary terms. The report, authored by IIT-Bombay professor Ashish Das, has made the suggestion in the wake of a move by the National Payments Corporation of India (NPCI) to allow prepaid wallet transactions on the interoperable UPI rails and make way for a 1.1% interchange for large merchants.
The report says the government and the RBI must support offline UPI payments in the same way they bear the cost of currency and central bank digital currency Currently, the law mandates that all bank account-to- account UPI transfers be free.
The government provides a subsidy in the Union Budget to partly compensatory payment companies and banks for the costs involved.
The subsidy is justified on the grounds that they help replace cash, which is more expensive considering the printing and circulation costs.
All bank account-to-bank account transactions continue to be free for merchants. NPCI norms also make it clear that any merchant accepting UPI will have to provide express consent before being enabled to accept prepaid instruments on the UPI QR.

Practice Questions:

On what grounds the subsidy is justified?
What does the report say about the government and the RBI?

Important Vocabs:

Consent- to agree to something
Compensatory- intended to recompense someone who has experienced loss
Interoperable- able to exchange and make use of information
Mandates- the power that is officially given to a group of people to do something,
Castigate- to criticize, strongly oppose or punish somebody