Trump’s Birthday Gift For Modi? | A 100% Tariff Slap Even As Narendra Surrenders On UPI? | Akash B — Transcript

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1. 0:00Modi ji's birthday was celebrated like a festival across the country today.
2. 0:04Festive atmosphere and many congratulations kept pouring in.
3. 0:07We also witnessed acts of worship. Newspapers carried advertisements that heaped lavish praise.
4. 0:11So, Donald Trump also thought to send his best wishes.
5. 0:27Hey Editor, just because you've learned AI, does that mean you can do whatever you want?
6. 0:30The US House of Representatives has now approved a bill.
7. 0:34It grants US President Donald Trump the authority to impose
8. 0:37a 100% tariff on those countries
9. 0:39Those who buy oil from Russia
10. 0:42China and India top the list of these countries, and names are being openly mentioned as well.
11. 0:48See what language is being used for our country.
12. 0:58The US Senate had already approved the bill by a landslide
13. 1:02And now, the House of Representatives has also passed it.
14. 1:06Now this bill has gone to President Trump for signature
15. 1:10However, these tariffs will not be imposed on China.
16. 1:13The US had already adopted this path, and China had imposed tariffs on the US to the same extent.
17. 1:19And Trump had to make a quiet retreat. Who was left?
18. 1:22It is us. And Trump seems to be going after the Modi government.
19. 1:27Whereas our government left no stone unturned in sycophancy.
20. 1:31We stopped buying oil from Iran. We started buying gas from the United States.
21. 1:36We struck a deal with Venezuela when USA said so
22. 1:40But America's bullying shows no signs of stopping.
23. 1:43We have already borne the brunt of tariffs, and now attempts are being made to twist our arm in the trade deal.
24. 1:49Modi ji must also be wondering: What to do?What to say?
25. 1:53This sword of 100% tariffs is held over our head
26. 1:58When India has surrendered to the US on every issue.
27. 2:02Starting October 15, on UPI
28. 2:06a Merchant Discount Rate (MDR) of 0.4% will be levied on merchant payments exceeding ₹2,000
29. 2:12The very UPI that was hailed for years as the world's largest free real-time payment system.
30. 2:18It was hailed as a revolutionary achievement and described as empowering.
31. 2:22Charges are going to be levied on that as well now.
32. 2:25But the question is, why did the need for these charges suddenly arise after six years?
33. 2:31Has the organization that operates UPI run out of funds?
34. 2:35Will the UPI system shut down if no fees are levied on it?
35. 2:38Or the truth is that these charges have been brought at the behest of the Trump administration.
36. 2:45...because American payment companies like Visa, Mastercard were suffering huge losses due to free payment system
37. 2:53The opposition Congress party has now raised this issue a lot.
38. 2:57They are saying that Narendra Modi is surrendering to America.
39. 3:00That is why it is important to understand both these things in detail in today's episode of Deshbhakt
40. 3:05They look different but are connected.
41. 3:07This threat—this legislation—from the US regarding a 100% tariff...
42. 3:11And India now imposing charges on successful UPI project.
43. 3:15You remember how whenever Trump meets Modi, he heaps praise on him.
44. 3:20But the moment the opportunity arises, he stabs in the back.
45. 3:23But why is our old friend doing this?
46. 3:26India has never said anything negative about the US or Trump.
47. 3:31So why are we being treated like strangers today?
48. 3:35Or perhaps Trump has realized that we don't really have anything significant to counter with. We have no cards.
49. 3:42Don't do a half the job like politician—hit the bell icon along with subscribing.
50. 3:47Look, whether the US imposes tariffs or an MDR being levied on UPI transactions.
51. 3:52Ultimately, the impact falls on you. Your company's costs will increase. Your pocket will become emptier.
52. 3:57And the problem is that in today's world, disruption is not caused solely by geopolitics, war, or natural disasters.
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72. 5:22Just as wishes were pouring in for Modi's 76th birthday,
73. 5:27At the same time, the US House of Representatives with a wide margin of 262 to 159.
74. 5:34The Lindsey Graham Sanctioning Russia and Iran Act of 2026 was approved.
75. 5:39Several Democratic lawmakers crossed the floor for this bill and voted with the Republicans.
76. 5:45Top countries purchasing oil and gas from Russia are the targets of this bill.
77. 5:51...a source of revenue for Russia, on which President Trump could now impose a 100% tariff.
78. 5:57We had already stopped buying oil from Iran due to US bullying.
79. 6:01Then, sanctions imposed on Russia. Consequently, Russia became a major source of oil for us.
80. 6:07Now, America is blackmailing us on that front as well, demanding that we stop buying oil.
81. 6:12Bear in mind, our dilemma here is that we import more than 80% of the crude oil required to meet our needs.
82. 6:19And before last year, we imported 50% of our oil, and even now, we import more than 30% of our oil from Russia.
83. 6:26In other words, this bill directly targets our energy security.
84. 6:30It is extremely dangerous for our country.
85. 6:33Perhaps that is why the Indian government, too, is not remaining silent for the first time.
86. 6:37The Modi government immediately issued a statement and said...
87. 6:40That ensuring energy security for 1.4 billion people is the government's responsibility.
88. 6:45And it will continue to source oil from various locations.
89. 6:48However, the Indian govet does not want to close the door on dialogue with the US. It does not want that to happen.
90. 6:54That is why the statement also noted that
91. 6:57discussions regarding this issue have been ongoing between the two countries at the highest level.
92. 7:02But what has actually come out of all these conversations and photo opportunities?
93. 7:08Because every time Modi and Trump shake hands, they hug
94. 7:11and we feel as though we have truly become a 'Vishwaguru' and every time Trump praises Modi
95. 7:17A wave of delight sweeps through the Godi media
96. 7:23But the reality isn't beautiful. It's very ugly.
97. 7:27America is leaving no stone unturned to humiliate us.
98. 7:30Last year, too, we had to bear the brunt of tariffs regarding the issue of Russian oil.
99. 7:35On top of this, the Trump administration has proposed a permanent $100,000 fee for H-1B visas.
100. 7:41Who will be impacted most? Indians.
101. 7:44A threat of a 200% tariff on generic pharma exports has been issued.
102. 7:49Who would face a problem here? After all, India supplies 40% of the generic prescription medicines used in the US.
103. 7:56Trump has threatened that as well.
104. 7:58Today, America is issuing a new threat of a 100% tariff against us.
105. 8:02When we have listened to everything they said for so many years.
106. 8:05When the US imposed sanctions on Iran, the Chabahar Port—on which we had worked for years, invested money
107. 8:12We abandoned it overnight.
108. 8:14And some time ago, the US Navy shot and took lives of three Indian mariners near Hormuz.
109. 8:19For the first time in the country's history, US missiles took the lives of Indian citizens.
110. 8:25But there wasn't even a message of regret from the US.
111. 8:28Instead we were threatened to remove our sailors from here, or more would lose their lives... and US not responsible.
112. 8:34And no patriot can ever forget this scene.
113. 8:38Illegal immigrants need to be sent back ... By all means, send them back. It is your right.
114. 8:42But the way people were shackled like animal, and a video of it was made and released publicly...
115. 8:49It shows how important our government and our country are to the American administration.
116. 8:56But our government kept enduring one insult after another; the Modi government remained completely silent.
117. 9:02All these things reveal just how deep—or how hollow—America's friendship is.
118. 9:09But what has happened with UPI over the past two days shows how Narendra has surrendered.
119. 9:15India is ready to shoot itself in the foot regarding its own digital payment revolution.
120. 9:22Simply because American companies find this system unfair. They perceive it as state-sponsored.
121. 9:27It seems anti-competitive. And the Trump administration had been pressuring Modi on this issue for months.
122. 9:34Let me explain
123. 9:35Last year, when the talk of imposing charges on UPI first surfaced...
124. 9:39The government then hastily declared this news to be fake news.
125. 9:42A full-fledged tweet was posted against this. People were warned not to spread such fake news.
126. 9:47But now the National Payments Corporation of India (NPCI) has announced through a circular that
127. 9:54that from October 15, UPI payments given to merchants
128. 9:58An MDR (Merchant Discount Rate) of 0.4% will be levied on transactions exceeding ₹2,000.
129. 10:04₹12 on payment of ₹3000, ₹200 on payment of ₹50,000
130. 10:09A cap of ₹300 has also been applied to any payment exceeding ₹75,000.
131. 10:16Now you might say, Deshbhakt, you don't get everything in life for free; you have to pay for it.
132. 10:21That’s absolutely true. We also have to get episode sponsors to cover the editor's costs.
133. 10:27And the government has also built in a lot of exceptions.
134. 10:30For instance, P2P means that if you transfer money to a friend, a family member, or any individual,
135. 10:35it will always be free.
136. 10:36Small merchants—meaning those who earn less than ₹1 lakh per month via UPI...
137. 10:42They, too, will not have to pay any charges.
138. 10:44According to the government, 96% of merchant transactions they fall under the exempted category.
139. 10:52In thin-margin sectors like railways, telecom, insurance, and fuel,
140. 10:56a flat charge of ₹5 will be levied; a percentage-based charge will not be applied.
141. 11:00Wow! Just think—the government made this decision after such careful consideration,
142. 11:03yet look at how negatively we talk about it.
143. 11:06I admit that this amount seems small, and the government's intention also appears to be right.
144. 11:11But when you look at the game of geopolitics and the game of economics behind it...
145. 11:15It will blow your mind once you understand it. Let's get to America's bullying in a couple of minutes.
146. 11:20But first, let's understand the mess the government has created for the time being.
147. 11:25The very first impact is the GST twist.
148. 11:29According to tax experts, if you are applying MDR
149. 11:32So, 18% GST will also be applicable to it, which merchants can claim via Input Tax Credit.
150. 11:37So, if you calculate the MDR on the GST-inclusive amount...
151. 11:41Then, if GST is applied to the MDR, the effective rate will reach around 0.5% instead of 0.4%.
152. 11:49In a way, this will amount to GST upon GST.
153. 11:52Do you get extra 2AB or not?
154. 11:55We are already witnessing the second impact. People have started to rebel.
155. 12:00Petrol pump dealers have openly threatened
156. 12:02If you charge even ₹5 on UPI payments exceeding ₹2,000, we will switch to a cash-only mode.
157. 12:08Because they believe their margins are very thin— that are already determined by the OMCs.
158. 12:14Nitin Kamath of Zerodha also flagged this
159. 12:18Brokers will face further difficulties because there is no guarantee whether the money has been transferred or not.
160. 12:23At what price the trade is to take place—or not
161. 12:26And BharatPe cofounder Ashneer Grover has a straightforward question
162. 12:31Call it MDR or whatever you want
163. 12:35If the ultimate impact is going to fall on the consumer anyway, then just call it a tax.
164. 12:39And after that comes the complex structure.
165. 12:42The interesting thing is that this charge is not the same everywhere.
166. 12:45Until now, it was completely free—a flat rate same for everyone.
167. 12:49Now, the MDR for mutual funds, stocks, and brokers is just 0.02%.
168. 12:54There is a cap of ₹300, which is much lower than that for commercial purchases.
169. 12:58This means that capital markets have been given special treatment.
170. 13:01Whereas an ordinary petrol pump or grocery store will have to bear the same flat-rate or percentage-based charge system.
171. 13:06Experts believe that this differential treatment itself demonstrates the extent of the mess in the policy
172. 13:12Just like the joke surrounding the rates under the earlier version of GST (GST 1.0)...
173. 13:18That's what we're seeing here
174. 13:20Only a fool would think that these merchants won't eventually pass this fee on to you.
175. 13:25And this is what is written in our destiny too.
176. 13:28You just keep paying the government, and they will keep levying charges.
177. 13:31If you are employed, a portion of your salary goes straight towards income tax.
178. 13:35If you go to the bank to withdraw that same salary, charges apply.
179. 13:38Now, charges have started applying to ATMs as well.
180. 13:41Charges have been levied on credit card transactions for years.
181. 13:44Let's say you bought an item after paying all these charges; GST would be levied on that as well.
182. 13:49And among them all came UPI
183. 13:52Which the government had promised to keep free of charge for users forever.
184. 13:55Now, charges have been announced for that as well.
185. 13:58But what is even more tragic is that the government did not do all this of its own volition.
186. 14:03It has been done under pressure from the US.
187. 14:06But what does America have to do with our UPI? What difference does it make to them?
188. 14:11The United States Trade Representative explicitly stated in its March 2026 report on foreign trade barriers...
189. 14:18Regarding India's Zero MDR policy—or to put it in Hindi, the free UPI policy...
190. 14:22It has become a barrier that gives domestic players an unequal and unfair advantage over foreign players.
191. 14:30To put it simply, US companies like Visa and Mastercard wouldn't be able to operate here.
192. 14:37The US was unhappy about this because its companies were suffering losses.
193. 14:41They were unable to grow in India, and UPI was getting an unfair state advantage.
194. 14:47Immediately after this, Parliament passed the Taxation and Other Laws Amendment Bill, 2026.
195. 14:53Under which Section 10A of the Payment and Settlement Systems Act was amended.
196. 14:57This section previously prohibited any bank charges on UPI and RuPay. Now, permission has been granted.
197. 15:04Ajay Srivastava, founder of the Global Trade Research Initiative, says...
198. 15:08That Walmart-owned PhonePe will reap the biggest benefit from the new charges.
199. 15:13Which processes approximately 45% to 49% of UPI transactions.
200. 15:17UPI was created by Indian public institutions and banks.
201. 15:21But PhonePe and Google Pay together process more than 80% of transactions.
202. 15:26And they also gain access to the customers' spending data. They acquire this critical data as well.
203. 15:32It is worth noting that PhonePe had put its massive IPO launch on hold back in March 2026, citing market conditions.
204. 15:45And now that the MDR has been implemented, its valuation will automatically get a boost.
205. 15:50Because now the profit is certain, the path to prosperity and profit has been established
206. 15:54So now when its IPO comes, it will be ground breaking
207. 15:58Now, was this pause a coincidence, or was it implemented at someone's suggestion?
208. 16:03The most interesting thing is—just look at the timing of all this.
209. 16:06The India-US trade deal, which has been in the works for quite some time...
210. 16:11is stuck in final negotiations
211. 16:14And India has refused to open up the agriculture sector, designating it a 'red line'.
212. 16:18So, were these UPI charges compromise... that okay, we wouldn't fully open up the agricultural sector
213. 16:24Levy charges on UPI so that it doesn't feel like unfair competition to you.
214. 16:29By the way, the US also tried to impose on Brazil's free payment system.
215. 16:35However, President Lula defended his free payment system and did not bow to the US.
216. 16:41That is why Rahul Gandhi is raising this issue vigorously.
217. 16:44...he is accusing Modi of bowing down to America.
218. 16:57The government denied this a year ago and is still denying it today.
219. 17:01...saying it is completely false, baseless, and misleading.
220. 17:04We haven't done this under international pressure. But the opposition isn't sitting quietly either.
221. 17:09Rahul Gandhi is demanding the withdrawal of the UPI tax.
222. 17:13Jairam Ramesh has even coined a name for it: NOTA—Narendra's Ongoing Trump Appeasement Program.
223. 17:20Congress President Mallikarjun Kharge has termed this an outright loot
224. 17:24Many people also agree
225. 17:26But if the Congress is lying and there is no pressure from America...
226. 17:30And if the government is telling us the truth, then it means either that the government's pajamas are torn.
227. 17:37and it needs some money from somewhere,
228. 17:40Or perhaps the NPCI, which operates UPI, has simply run out of funds.
229. 17:46...meaning that if the charges aren't applied, UPI will stop working from tomorrow; it simply won't run on your phone.
230. 17:50Let us examine the truth of this.
231. 17:52The government's argument remains that UPI is free to use.
232. 17:58But money is needed to operate it.
233. 18:00That's true. An industry estimate from the Parliamentary Standing Committee on Industry says that
234. 18:04It costs approximately ₹20,000 crore annually to operate the UPI ecosystem.
235. 18:10Meanwhile, the government provides an incentive scheme worth ₹2,000 crore.
236. 18:15...at least thats what was given in 2026- 27.
237. 18:18If we look at the figures from the past few years,
238. 18:21the govt spent between ₹1300 crore and ₹3600 crore to develop this entire ecosystem.
239. 18:27But on the other hand, experts ask...
240. 18:30The NPCI itself—which operates UPI—was sitting on a net surplus of ₹1,300 crore in the 2026 financial year.
241. 18:39There is a 12% decline, but it is still profitable—not running at a loss.
242. 18:45And according to a 2024 NASSCOM report,
243. 18:48UPI has contributed approximately Rs 1.3 lakh crore to India's GDP.
244. 18:52It has helped boost the GDP. This includes cash handling costs, savings achieved there too.
245. 18:58RBI itself states that approximately ₹5000 crore was spent on security printing alone in the 2022 financial year.
246. 19:06After all, cash isn't free either.
247. 19:08So if you reduce cash in the economy, use more UPI in the economy,
248. 19:13So the expenditure for the government is less there too.
249. 19:15The government faces no shortage of funds when it comes to distributing freebies.
250. 19:21No shortage of funds for the Ladli Behna Scheme
251. 19:23But operating UPI costs money—you have to understand that. Then, we are taught the economics lesson
252. 19:29The question is, when UPI itself is such a GDP booster—so transformative, so revolutionary...
253. 19:34So was it necessary to pass on the cost of this to consumers and small merchants?
254. 19:39whereas the NPCI itself is sitting on profits.
255. 19:42The government is listing the exemptions. It is citing the figure of 0.4%.
256. 19:47...saying it's such a small thing. Why are you arguing?
257. 19:49But there is a psychological impact to this that the govt is not talking about—does not want to tell us about.
258. 19:53Let me explain. Local circles conducted a survey.
259. 19:57More than 20,000 people were asked if UPI fees were levied on large merchants
260. 20:01So, will they continue to use UPI in the same way?
261. 20:04Only 12% of people said yes.
262. 20:07And when they were told that if this fee would be recovered from them—which is what would eventually happen...
263. 20:13then only 2% of people said they would continue using UPI.
264. 20:17In other words, if merchants start passing these charges on to customers—a possibility everyone is aware of...
265. 20:24Regardless of the advice the government gives to merchants
266. 20:27Then, India's most successful digital payment revolution will collapse under its own weight and come to an end.
267. 20:34I, too, do not want to accept that we made our internal decisions—regarding finances and policies—at America's behest.
268. 20:40However, the data and facts point us in that direction
269. 20:43Given the pressure that has mounted on UPI, and the looming threat of a 100% tariff...
270. 20:48Given the way the trade deal has not yet been finalized...
271. 20:52This shows that America knows what our weak spots are.
272. 20:57It knows that we cannot retaliate because we neither have the exports nor any such leverage.
273. 21:03Which we can use against America.
274. 21:06In Trump's language, We don't have any cards.
275. 21:10But when it comes to talk—there’s no shortage of that.
276. 21:21I don't know about the country's economy, but do take care of your own.
277. 21:25You can attend the GPT6 astra live training class on Saturday from 10:00 AM to 7:00 PM.
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279. 21:34Link is in the description. Do keep watching; more episodes are coming up.