Hindi English Translation || Editorial || Complex priorities: On UPI transactions, MDR charges

Complex priorities: On UPI transactions, MDR charges

A fear (भय, आशंका) of political fallout (दुष्परिणाम, परिणाम) has led to an overly (अत्यधिक रूप से, जरूरत से ज्यादा) complex (जटिल, पेचीदा) MDR structure (संरचना, ढाँचा) on UPI

The Merchant Discount Rate (MDR) (व्यापारी छूट दर) charges announced for UPI transactions show how political considerations (विचारणीय पहलू, कारण) can dilute (कमजोर करना, प्रभाव कम करना) economic benefits. In a quest to (in an attempt or search to achieve something; in pursuit of, in order to, with the aim of, in an effort to, attempting to, striving to) preempt (to take action in order to prevent an anticipated event from happening; forestall, prevent, anticipate, avert) political attacks (आलोचना, विरोध), the rate structure (शुल्क संरचना, दर व्यवस्था) announced by the National Payments Corporation of India (भारतीय राष्ट्रीय भुगतान निगम) has been made overly complex. From October 15, the new rates will apply only to UPI payments of ₹2,000 or more made at merchants (व्यापारी, दुकानदार). As such (therefore, thus, consequently, accordingly), the charge is limited (सीमित, प्रतिबंधित) to only about (approximately, roughly, around, merely) 2.5% of all UPI transactions, which is a welcome (स्वागतयोग्य, सुखद) limitation (सीमा, प्रतिबंध). Yet, within this, the rules have created different gradations (a series of successive changes, stages, or degrees; degree, tier, level, stage, variation). UPI payments made at small merchants earning less than ₹1 lakh a month are exempt (free from an obligation or liability imposed on others; free, excused, spared, immune). Those made to merchants operating in certain (specific, particular, designated, distinct) essential sectors will attract (incur or become subject to a specific fee or charge; draw, incur, entail) a flat (fixed, uniform, constant, invariable) MDR charge instead of the 0.4% applicable (relevant, appropriate, pertinent, germane, operative) on other sectors (domain, branch, division, industry, segment). Capital market (the part of a financial system concerned with raising capital by dealing in shares, bonds, and other long-term investments; financial market, stock market, securities market, equity market) payments above ₹2,000 will attract a different MDR. These are clearly (evidently, obviously, undoubtedly, undeniably) designed (plan or structure with a specific purpose in mind; formulate, intend, craft) keeping political backlash (a strong and adverse reaction by a large number of people; adverse reaction, counterblow, repercussion, resentment) in mind. However (nevertheless, nonetheless, yet, notwithstanding), they raise some important doubts among (in the midst of or shared by a particular group; amid, within, surrounded by) merchants, and could potentially (possibly, conceivably, perhaps, plausibly) slow the adoption (embracing, acceptance, implementation, taking up) of UPI in India. For example, the rules are not clear (unambiguous, straightforward, explicit, lucid) on what happens to a small merchant who crosses the ₹1 lakh a month turnover (the amount of money taken by a business in a particular period; revenue, gross revenue, income, sales volume, gross earnings) threshold (a level, rate, or amount at which something comes into effect; limit, starting point, cutoff point), which is a low limit (ceiling, restriction, cap) at today’s prices (based on the current economic value, inflation rates, or market costs; at current valuation, in real terms, presently valued, at prevailing rates). Who is monitoring (observe, track, watch, oversee) their incomes? This will either increase the compliance (adherence, observance, conformity, obedience) burden (a heavy load or a severe responsibility; load, strain, hardship, encumbrance) on small merchants, or involve (entail, require, necessitate, encompass) a new mechanism (procedure, system, method, process) for real-time transaction-checking that banks will have to develop. In the short run (in the short term, immediately, temporarily, for now), it will likely (probably, presumably, doubtlessly, in all probability) result in small merchants simply refusing to accept UPI until greater clarity (lucidity, certainty, exactness, transparency) emerges (become known, come to light, appear, surface).

The government has also instructed banks to make sure that merchants do not pass on (to transfer the cost or burden of something to someone else; transfer, hand over, shift, transmit) this charge to customers. But it has not specified how banks are expected to check whether merchants tweak (adjust, modify, alter, fine-tune) their prices to absorb (to take in or bear the cost or impact of something without passing it on; bear, take on, shoulder, endure) this additional charge. A back-of-the-envelope (done quickly to provide a rough estimate; rough, approximate, rudimentary, preliminary) calculation based on past trends (tendency, pattern) suggests (indicate, point to, imply, intimate) that the MDR will yield (produce, generate, or supply a financial return or total figure; produce, generate, provide, return, bring in) an upper limit of ₹2,400 crore of monthly revenue for the payments ecosystem (a complex network or interconnected system; network, structure, environment). The sector-wise (industry-specific, category-wise, segment-based, divisional) flat rates (fixed rate, uniform rate, standard fee, invariable charge) and reduced rates (discounted rate, concessionary rate) will likely result in a lower amount. The government has denied any U.S. pressure (coercion, force, compulsion, intimidation) to bring these rates to favour (to give an unfair advantage to someone or something; bias, advantage, benefit, privilege) American credit card companies. Yet, the data suggest that the benefit will largely (to a great extent or on the whole; mostly, mainly, primarily, predominantly) accrue (to be received by someone in regular or increasing amounts over time; accumulate, collect, build up, arise) to private banks and U.S.-owned (American-owned, U.S.-controlled, American-held, U.S.-based) UPI apps. There is still an argument to be made for (a compelling reason or justification existing in favor of a proposition; justification for, case for, rationale for, grounds for) the Reserve Bank of India to foot this bill from the vast (immense, huge, extensive, massive) surpluses (excess, oversupply, abundance, remainder) it generates every year. Maintaining (continue to keep something in existence, operation or good condition; preserve, sustain, retain, uphold) vital (essential, crucial, indispensable, imperative) payment infrastructure (the underlying framework and systems that enable financial transactions between parties; financial system framework, payment network) is surely (used to emphasize the speaker’s firm belief that what they are saying is true; certainly, definitely, undoubtedly, unquestionably) a good use of these funds. However, if the government persists (to continue firmly or obstinately in an opinion or a course of action in spite of difficulty or opposition; persevere, continue, carry on, insist) in implementing (to put into effect; execute, apply, carry out, enact) this charge, it should certainly (undoubtedly, definitely, or surely; absolutely, undeniably, assuredly, positively) simplify (clarify, streamline, uncomplicate, disentangle) the structure. There is still time before its rollout (the official launch or introduction of a new product or service; launch, introduction, unveiling, release). The Goods and Services Tax (an indirect, comprehensive, multi-stage, destination-based tax levied on the supply of goods and services in India, implemented on July 1, 2017) experience (track record, history, past events, precedent) shows that rate complexity (intricacy, complication, convolution, entanglement) hits (affect badly, damage, impact, devastate) small businesses the hardest (most severely or with the greatest impact; most severely, most heavily, most intensely, worst).

Courtesy: The Hindu

Important Word List With Meaning

1.complex (adjective)

Hindi Meaning - जटिल, पेचीदा
English Meaning - complicated, intricate, involved, multifaceted.

2.limitation (noun)

Hindi Meaning - सीमा, प्रतिबंध
English Meaning - restriction, constraint, cap.

3.fear (noun)

Hindi Meaning - भय, आशंका
English Meaning - anxiety, apprehension, dread, trepidation.

4.fallout (noun)

Hindi Meaning - दुष्परिणाम, परिणाम
English Meaning - repercussion, consequence, aftermath, outcome.

5.overly (adverb)

Hindi Meaning - अत्यधिक रूप से, जरूरत से ज्यादा
English Meaning - to an excessive degree; excessively, unduly, inordinately, disproportionately.

6.Merchant Discount Rate (MDR) (noun)

Hindi Meaning - व्यापारी छूट दर
English Meaning - the fee or rate charged to a merchant (shopkeeper) by a bank for providing debit and credit card payment processing services, fundamentally affecting the cost of digital transactions.

7.structure (noun)

Hindi Meaning - संरचना, ढाँचा
English Meaning - framework, arrangement, configuration, system.

8.consideration (noun)

Hindi Meaning - विचारणीय पहलू, कारण
English Meaning - factor, reason, point, concern, element, aspect.

9.dilute (verb)

Hindi Meaning - कमजोर करना, प्रभाव कम करना
English Meaning - weaken, diminish, reduce, lessen.

10.attack (noun)

Hindi Meaning - आलोचना, विरोध
English Meaning - aggressive criticism or opposition; criticism, assault, censure, condemnation.

11.rate structure (noun)

Hindi Meaning - शुल्क संरचना, दर व्यवस्था
English Meaning - pricing system, fee arrangement, tariff system.

12.National Payments Corporation of India (NPCI) (noun)

Hindi Meaning - भारतीय राष्ट्रीय भुगतान निगम
English Meaning - an umbrella organisation for operating retail payments and settlement systems in India, established in 2008 as an initiative of the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) under the Payment and Settlement Systems Act, 2007, to create a robust payment and settlement infrastructure in India. It operates and supports major retail payment systems, including UPI, RuPay, IMPS and NACH.

13.merchant (noun)

Hindi Meaning - व्यापारी, दुकानदार
English Meaning - trader, retailer, seller, vendor.

14.limited (phrase)

Hindi Meaning - सीमित, प्रतिबंधित
English Meaning - restricted, capped, confined, constrained.

15.welcome (adjective)

Hindi Meaning - स्वागतयोग्य, सुखद
English Meaning - pleasing, positive, agreeable, encouraging, favourable.

16.complex priorities (noun)

English Meaning - several important aims or considerations that must be managed at the same time, often with competing interests; multiple considerations, conflicting objectives, complicated targets.

17.priority (noun)

English Meaning - preference, precedence, urgency, prime concern.

18.lead to (phrasal verb)

English Meaning - cause, bring about, result in, give rise to, produce.

19.in a quest to (phrase)

English Meaning - in an attempt or search to achieve something; in pursuit of, in order to, with the aim of, in an effort to, attempting to, striving to.

20.as such (phrase)

English Meaning - therefore, thus, consequently, accordingly.

21.only about (phrase)

English Meaning - approximately, roughly, around, merely.

22.Unified Payments Interface (UPI) (noun)

English Meaning - an instant payment system developed by the National Payments Corporation of India (NPCI) that enables interoperable, real-time bank-to-bank payments through a single interface; the pilot was launched on 11 April 2016 and UPI went live for customers in August 2016.

23.preempt (verb)

English Meaning - to take action in order to prevent an anticipated event from happening; forestall, prevent, anticipate, avert.

24.gradation (noun)

English Meaning - a series of successive changes, stages, or degrees; degree, tier, level, stage, variation.

25.exempt (adjective)

English Meaning - free from an obligation or liability imposed on others; free, excused, spared, immune.

26.certain (adjective)

English Meaning - specific, particular, designated, distinct.

27.attract (verb)

English Meaning - incur or become subject to a specific fee or charge; draw, incur, entail.

28.flat (adjective)

English Meaning - fixed, uniform, constant, invariable.

29.applicable (adjective)

English Meaning - relevant, appropriate, pertinent, germane, operative.

30.sector (noun)

English Meaning - domain, branch, division, industry, segment.

31.capital market (noun)

English Meaning - the part of a financial system concerned with raising capital by dealing in shares, bonds, and other long-term investments; financial market, stock market, securities market, equity market.

32.clearly (adverb)

English Meaning - evidently, obviously, undoubtedly, undeniably.

33.design (verb)

English Meaning - plan or structure with a specific purpose in mind; formulate, intend, craft.

34.keep in mind (phrase)

English Meaning - to remember or consider something when making a decision; consider, remember, bear in mind, take into account.

35.backlash (noun)

English Meaning - a strong and adverse reaction by a large number of people; adverse reaction, counterblow, repercussion, resentment.

36.however (adverb)

English Meaning - nevertheless, nonetheless, yet, notwithstanding.

37.raise doubts (phrase)

English Meaning - cause people to question or become uncertain about something; create doubts, arouse suspicion, prompt questions, cast doubt.

38.among (preposition)

English Meaning - in the midst of or shared by a particular group; amid, within, surrounded by.

39.potentially (adverb)

English Meaning - possibly, conceivably, perhaps, plausibly.

40.adoption (noun)

English Meaning - embracing, acceptance, implementation, taking up.

41.clear (adjective)

English Meaning - unambiguous, straightforward, explicit, lucid.

42.turnover (noun)

English Meaning - the amount of money taken by a business in a particular period; revenue, gross revenue, income, sales volume, gross earnings.

43.threshold (noun)

English Meaning - a level, rate, or amount at which something comes into effect; limit, starting point, cutoff point.

44.limit (noun)

English Meaning - ceiling, restriction, cap.

45.at today’s prices (phrase)

English Meaning - based on the current economic value, inflation rates, or market costs; at current valuation, in real terms, presently valued, at prevailing rates.

46.monitor (verb)

English Meaning - observe, track, watch, oversee.

47.compliance (noun)

English Meaning - adherence, observance, conformity, obedience.

48.burden (noun)

English Meaning - a heavy load or a severe responsibility; load, strain, hardship, encumbrance.

49.involve (verb)

English Meaning - entail, require, necessitate, encompass.

50.mechanism (noun)

English Meaning - procedure, system, method, process.

51.real-time transaction checking (noun)

English Meaning - checking payment transactions immediately as they occur rather than after a delay; instant transaction verification, real-time monitoring, live transaction checking, immediate verification.

52.in the short run (phrase)

English Meaning - in the short term, immediately, temporarily, for now.

53.likely (adverb)

English Meaning - probably, presumably, doubtlessly, in all probability.

54.clarity (noun)

English Meaning - lucidity, certainty, exactness, transparency.

55.emerge (verb)

English Meaning - become known, come to light, appear, surface.

56.pass on (phrasal verb)

English Meaning - to transfer the cost or burden of something to someone else; transfer, hand over, shift, transmit.

57.tweak (verb)

English Meaning - adjust, modify, alter, fine-tune.

58.absorb (verb)

English Meaning - to take in or bear the cost or impact of something without passing it on; bear, take on, shoulder, endure.

59.back-of-the-envelope (adjective)

English Meaning - done quickly to provide a rough estimate; rough, approximate, rudimentary, preliminary.

60.back-of-the-envelope calculation (noun)

English Meaning - a quick and approximate calculation made using rough figures rather than detailed analysis; rough calculation, quick estimate, approximate calculation, rough computation.

61.trend (noun)

English Meaning - tendency, pattern.

62.suggest (verb)

English Meaning - indicate, point to, imply, intimate.

63.yield (verb)

English Meaning - produce, generate, or supply a financial return or total figure; produce, generate, provide, return, bring in.

64.ecosystem (noun)

English Meaning - a complex network or interconnected system; network, structure, environment.

65.sector-wise (adjective)

English Meaning - industry-specific, category-wise, segment-based, divisional.

66.flat rate (noun)

English Meaning - fixed rate, uniform rate, standard fee, invariable charge.

67.reduced rate (noun)

English Meaning - discounted rate, concessionary rate.

68.pressure (noun)

English Meaning - coercion, force, compulsion, intimidation.

69.favour (verb)

English Meaning - to give an unfair advantage to someone or something; bias, advantage, benefit, privilege.

70.largely (adverb)

English Meaning - to a great extent or on the whole; mostly, mainly, primarily, predominantly.

71.accrue (verb)

English Meaning - to be received by someone in regular or increasing amounts over time; accumulate, collect, build up, arise.

72.U.S.-owned (adjective)

English Meaning - American-owned, U.S.-controlled, American-held, U.S.-based.

73.argument to be made for (phrase)

English Meaning - a compelling reason or justification existing in favor of a proposition; justification for, case for, rationale for, grounds for.

74.foot the bill (phrase)

English Meaning - to pay the bill for something, typically when the amount is considered large or unreasonable; pay for, settle up, pick up the tab, bear the cost.

75.vast (adjective)

English Meaning - immense, huge, extensive, massive.

76.surplus (noun)

English Meaning - excess, oversupply, abundance, remainder.

77.maintain (verb)

English Meaning - continue to keep something in existence, operation or good condition; preserve, sustain, retain, uphold.

78.vital (adjective)

English Meaning - essential, crucial, indispensable, imperative.

79.payment infrastructure (noun)

English Meaning - the underlying framework and systems that enable financial transactions between parties; financial system framework, payment network.

80.surely (adverb)

English Meaning - used to emphasize the speaker’s firm belief that what they are saying is true; certainly, definitely, undoubtedly, unquestionably.

81.persist (verb)

English Meaning - to continue firmly or obstinately in an opinion or a course of action in spite of difficulty or opposition; persevere, continue, carry on, insist.

82.implement (verb)

English Meaning - to put into effect; execute, apply, carry out, enact.

83.certainly (adverb)

English Meaning - undoubtedly, definitely, or surely; absolutely, undeniably, assuredly, positively.

84.simplify (verb)

English Meaning - clarify, streamline, uncomplicate, disentangle.

85.rollout (noun)

English Meaning - the official launch or introduction of a new product or service; launch, introduction, unveiling, release.

86.Goods and Services Tax (GST) (noun)

English Meaning - an indirect, comprehensive, multi-stage, destination-based tax levied on the supply of goods and services in India, implemented on July 1, 2017.

87.experience (noun)

English Meaning - track record, history, past events, precedent.

88.complexity (noun)

English Meaning - intricacy, complication, convolution, entanglement.

89.hit (verb)

English Meaning - affect badly, damage, impact, devastate.

90.hardest (adverb)

English Meaning - most severely or with the greatest impact; most severely, most heavily, most intensely, worst.