'Any Levy On UPI Is Just Tax Collection': Ashneer Grover Says Opposing Govt Stance

Entrepreneur Ashneer Grover has questioned the need for any levy on UPI transactions, arguing that the digital payments system does not require a government subsidy and that imposing a tax on it would amount to "just tax collection".

In a post, Grover cited figures for the Reserve Bank of India's surplus transfer to the government, listed bank profits and the pre-tax surplus of the National Payments Corporation of India (NPCI), which operates UPI. "If someone in India spends five minutes Googling the numbers, everything will become crystal clear," Grover said in the post.

He cited the RBI surplus to the government at Rs 2.87 lakh crore (US$30 billion) and total listed bank profits at Rs 4.11 lakh crore (US$42 billion). Grover also cited NPCI's pre-tax "surplus" at Rs 1,888 crore (US$200 million).

"So who is actually losing money because of UPI, and what subsidy is the government giving to UPI that is causing this discomfort?" he said. Grover also pointed to the cost of running ATMs and cash logistics in India, which he put at Rs 30,500 crore (US$3.0 billion).

"The cost of running ATMs and cash logistics in India is Rs 30,500 crore (US$3.0 billion). If you want to optimise, shut ATMs and promote UPI instead," he said. Grover further criticised the prospect of imposing a levy on UPI, calling it a form of tax collection.

"Any levy on UPI is just tax collection. UPI is the one scientific achievement of India everyone acknowledges, but now it will be sacrificed at the altar of tax," he said. Ashneer Grover questions the need for any levy on UPI transactions.

He argues that the digital payments system does not require a government subsidy and that such a levy would amount to Grover cited the RBI's surplus transfer to the government at Rs 2.87 lakh crore and total listed bank profits at Rs 4.11 lakh crore.

He also mentioned NPCI's pre-tax Grover highlighted the cost of running ATMs and cash logistics in India, estimated at Rs 30,500 crore. He suggested that shutting ATMs and promoting UPI instead would be a better optimization.

Sagarika Chakraborty is a Senior Copy Editor at ABP Live English, where she handles business coverage and key developments in general news, while also actively chasing breaking stories. With a foundation in advertising, she transitioned into journalism to craft in-depth stories and explainers on the economy, real estate, and personal finance.

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