RBI Governor Mr. Sanjay Malhotra recently said that someone has to pay for the cost of UPI.The discussion has been going on for quite some years now. There is no doubt that there is a huge IT infrastructure behind the seemingly simple UPI transaction. Not just that, there is also a large security layer that has to remain on the edge constantly. The argument has been that to keep this kind of innovation going, there has to be some sort of fee associated with it. The bone of contention has always been simple: who should bear the cost of UPI?

The Government, keen on making the transition from cash to digital payments, has been absorbing a significant part of these costs and supporting the ecosystem. In this background, the Taxation and Other Laws (Amendment) Bill, 2026 has been introduced. The legislation creates a framework that could allow charges to be levied on certain categories of UPI transactions.

The general market perception is that certain high-value transactions, particularly those above ₹2,000, could be charged. These account for only a small proportion of total UPI transactions. P2P UPI transactions, however, are expected to remain untouched for now.

To put things in perspective, such charges would not be entirely unusual. We already pay for certain banking services such as NEFT, IMPS transfers or Demand Drafts. But I am not entirely convinced.

The Government has actively pushed India towards a digital payments economy. UPI was not merely allowed to grow organically. It was deliberately promoted as a public digital infrastructure that could reduce India's dependence on cash and make payments faster, cheaper and more transparent.

And it has worked.

Today, UPI is deeply embedded in our economy. From a small roadside vendor to a large enterprise, digital payments have become part of everyday commerce. But that also brings us back to the original question.

Cash transactions & Distribution infrastructure

Physical cash also has a significant cost. Currency has to be printed, transported, stored, distributed, collected and eventually replaced. There is an entire physical infrastructure behind the cash that we rarely think about. The cost is ultimately borne by the RBI and in different ways by the institutions that handle cash.

Over time, some of these costs have also found their way to customers. What was once considered a basic banking service has gradually acquired charges for certain forms of handling and logistics.

I know this is an indirect reference because the physical cash equivalent is the e-Rupee. But having said that, the underlying infrastructure in terms of distribution, circulation and collection is partly comparable to the IT infra used for digital transactions. 

Convenience or Forced convenience? 

Digital payments are certainly convenient. And I am willing to pay for convenience. But convenience as a choice is different and forced convenience is different. The push for digital was kind of forced, with indirect restrictions being made on cash movement. I perfectly understand the huge economic benefits that would accrue due to this transition from cash to digital. But there is a larger policy question here. If the Government deliberately encouraged citizens and businesses to move from cash to digital payments, and if that transition serves a larger economic objective, should the cost of maintaining that digital infrastructure eventually be pushed back to the users?

This is not an argument against charging for services. It is an argument about who should bear the cost of a policy-led transition.

UPI has been one of India's greatest digital success stories. It has reduced friction, enabled small businesses to accept digital payments, brought millions of people into the formal financial system and changed the way India transacts. In this context, it is only fair that the Government bears the cost. Yes, it has been doing it so far. Perhaps it would be better that it openly acknowledges it and puts the amendment on the back burner. 

While there is a cost to maintaining this infrastructure and keep innovating, the simple question is, why should it be you and me?

I watched both the FIFA World Cup 2026 semifinal matches live. It couldn't have gotten any better. Two matches, played within 24 hours of each other and yet they felt like they were from two completely different schools of football thinking.

Football has an uncanny way of teaching business lessons. Both games had moments that could have changed the outcome. Both featured talented players, experienced coaches and high-pressure situations. Yet the approaches adopted by the teams were remarkably different, leading to two very different outcomes.

As I watched the matches, I couldn't help drawing parallels with the challenges that MSMEs face every day. Whether it is teamwork, leadership, resilience or strategy, the lessons on the football field often apply just as much in real life.

Semifinal 1: Spain vs France

France's style had been Attack, Attack, Attack and Attack. Four star attackers. Spain on the other hand had a solid defense. A defense that was penetrated just once in the entire tournament. The penalty did give Spain the initial momentum and upper hand but what I felt was that France didn't play as a team. Due credit to Spain, but this match was more of France's undoing themselves rather than the opponent. Individual brilliance doesn't matter if it doesn't serve the team's purpose. France failed to convert because they didn't act like one unit in this match.

If you notice the stats - ball possession, passes were all nearly the same, yet the result was vastly different. That's because one number stood out: 3 saves by Spain. The defense played its part well while the performers didn't.

This is not uncommon in business either. Many MSMEs are built around one or two star performers — a top salesperson, a brilliant founder and a key technical hand. When that individual is on song, everything works. But when pressure mounts and the going gets difficult, if the rest of the team hasn't been built to complement and cover, the whole unit unravels. 

For MSMEs this means:

1. Prodigious talent has to be nurtured but ultimately no one is bigger than the company

2. When the going is tough, all hands have to be on deck

3. Don't simply stick to your role when the team is suffering

Semifinal 2: Argentina vs England

The first 15 to 20 minutes were brutal. I was wondering if they were playing football or rugby. Both teams carried bitterness and it reflected on the field without any apology. Neither ceded any ground.

In the second half, England got a critical breakthrough and scored. Ironically, what they did after scoring this goal led them to their defeat. Yes, they turned ultra-defensive.

This is a mistake I have seen many businesses make. The moment they get ahead with a big  win, close a good quarter, launch a successful product, they shift into protection mode. They stop doing the very things that got them the lead. England had momentum and chose to park it. In business, that is rarely a winning strategy.

The Argentines, desperate to equalize, mounted a series of attacks. The Argentine coach made smart substitutions and kept bringing in fresh energy. This was in direct contrast to England's approach. The equalizer gave more momentum to Argentina and they went on to score the second goal. Only after this did England realize their mistake and started a counter-attack but it was too late by then.

For MSMEs this means:

1. Being defensive in the market against an onslaught will only leave you weaker

2. Learn to create your chances even when there are none

The Leadership Lesson That Stood Out

I am not forgetting Kylian Mbappe's heroics or slighting his efforts, but I personally felt in the second half of the Spain game, he was waiting for chances to be created rather than take control. This was in direct contrast to what Lionel Messi was proactively doing when his team was in trouble against England.

Mbappe waited for the game to come to him. Messi went looking for it. Leadership under pressure is not about position or reputation. It is about who steps up when the team needs it most. On that night, only one of them did.

This distinction matters deeply in business. In most MSMEs I have worked with, the critical differentiator in tough moments is not strategy on paper. It when the leadership steps forward, takes ownership and drives the response. Titles don't lead. People do.

What It All Comes Down To

Winning or losing is decided by the approach you choose. What worked previously may not work now. What is important is the ability to iterate on the spot and take quick decisions on the fly.

For both France and England, it could have been a one-off game but it was the one that sent them off. The same is true in business. A single decision may not define your journey, but the approach you adopt in critical moments often does.

The best businesses, like the best teams, are not necessarily the most talented. They are the most adaptable.

The Tamil Nadu state election results were announced yesterday. It created an earthquake of sorts and ushered in a new political era. Vijay, among the top film stars, decided to leave his career at its peak and serve the people through electoral politics. He started Tamilaga Vettri Kazhagam (TVK) as an alternative to Dravidian (DMK & AIADMK) and National Parties (BJP & INC)

I keenly follow politics both at the state and national level. Though I thought it was a welcome move I had doubts about his ability to convert votes into seats. This is because winning is just about a simple majority. The first across the post. Tamil Nadu politics is deeply rooted in caste and community equations. Added to this are the regional powerhouses within each party plus the money (cash for votes) deployed in the final stages of the election. To be honest, I thought TVK will lose its deposit in many constituencies. Well, the people's mandate has proved everyone wrong. And I stand corrected and humbled. 

As I look back, this is a classic David vs. Goliath battle we all grew up listening to. In the modern political context, this is happening quite regularly. In fact, our neighbouring countries like Sri Lanka, Nepal have given positive verdicts to the challengers. This isn’t just a political upset. It’s a masterclass in strategy, positioning and execution.

In the business world we have seen this quite often. A startup or new innovation challenging an established company and taking them down - Apple vs. Blackberry, Netflix vs. Blockbuster, Marico vs. Unilever and so on. Seen through a business lens, this mandate offers some clear and practical lessons. Here are a few that MSMEs and startups can take away.

1. What problem are you solving?

This is the single most important factor. But given the population size, how does one go about identifying it? I think Vijay's team tackled this by identifying the competitor first and then working backwards to see the problem people had with them. He positioned the party as the answer to it.

Within that, there are multiple issues - corruption, nepotism, bureaucratic red tape, poor quality of government services, etc. Since there were many, they simply packaged it into one bundle and labelled it as evil. It was a strong analogy and very relatable for the customers. Many slogans were built around this.

2. What's your Ideal Customer Profile (ICP)?

It was very clear from the start because it was the fan base which got converted into the party. But the fan base alone won't suffice to win elections. They wanted to target multiple segments and this is where I think they created the concept of ideological leaders. To the uninitiated, there are 5 leaders from whom the party derives its ideology. Each leader represents a different strand of thought and identity. This way, even competing segments felt, “Ok, I’m included in this.”

So, in your business, who are you targeting?

3. Know your competitor

From the very start, the competitor was called out. Vijay didn't fight the battle on many fronts and lose energy. He concentrated all efforts on one competitor. In business, you can adopt this as long as there is an underlying distrust or discomfort among users. In this case, people were looking for an alternative and this was provided.

From our own backyard, I recollect stories of Zendesk & Freshdesk (now Freshworks). Freshworks simply called out the flaws of the competitor. They were able to do it only because they had a thorough understanding of the competitor’s product and features.

4. Consistent messaging

The focus was only on one competitor, with no deviations. The seeds were sown consistently in the minds of people. As the message kept spreading, even the fencesitters started noticing. Vijay was very strident in targeting one competitor on all platforms. He refused to acknowledge a tripolar contest and made it a bipolar contest. This way, the message he sent was very clear and simple - I’m the alternative.

So, what is the message you are leaving in your target market?

5. Branding

This is a case of personal branding coming to the fore. But equally important is the visual element of “Whistle”. I don’t know who chose that symbol, but the moment it was released, I felt this could be a gamechanger. Old timers know, people in rural, semi-urban and even in a few urban pockets blindly vote for the symbol. Think of Rising Sun, Two Leaves, or Mango. It is deeply embedded in people’s psyche. This is one reason why Naam Tamilar Katchi fought to get back the Farmer symbol.

It is not easy to popularise a symbol with a limited budget. That is why many parties look for a strong visual. Whistle is low cost, widely used, and hence creates an immediate connect. MSMEs and startups, think about your own logo. Is it connecting back to your core identity and values? Is it easy to make it popular?

6. Converting loyalists into evangelists

A loyalist stays true to you, but an evangelist does the work for you. Much like Apple fans or Harley owners, the evangelist carried the message. This is despite Vijay campaigning in very few places. In one statement, he said, “I may not be able to visit everywhere, but I will ensure Whistle enters every home.” This is where the loyalists got converted into evangelists and started carrying his message to every nook and corner.

They even forced people to vote as per their choice. This may not be right, because voting is a personal choice and a fundamental right. But the larger lesson here is about the raving fans who made it possible. In marketing, we have heard about decision-makers, influencers, etc. This is a classic example of influencers forcing decision-makers.

So, how are you going to get your customers to become evangelists?

Conclusion

In conclusion, this is a classic case study for all entrepreneurs and business owners. David didn't defeat Goliath by being stronger. He won by being smarter, focused and deeply connected to his cause. That is exactly what this election demonstrated and this is what every MSME and startup must internalise. Clarity beats resources. Consistency beats noise. And raving fans beat paid armies, every single time.

Kudos to the brilliant political strategists and the entire team behind the scenes who made this remarkable victory possible. 

FY2025-26 was demanding. Full of meetings, revised plans, deadlines and moments that tested patience in ways I hadn't quite anticipated. And yet, as I sit down to reflect on this year, the sharpest lesson didn't come from any of that. It came from a roadside shop.

I had gone to the e-sevai center to get a government certificate. It was crowded, so I decided to return the next day. On the way back home, I spotted this shop's signboard, Hello Xerox at Little Mount, Chennai. It was one of those ubiquitous shops dotting the roadside. Unremarkable on the outside. But this one offered a lot of added services. The person behind the counter was helpful and within five minutes, the work was done. The service charge was nominal. He told me I'd receive a notification from the Government once the certificate was ready and shared a link to check the status. Simple, neat and job done.

Well, the story is not about what happened till now. Nor is it about how Xerox became the default name for photocopying services. 

It begins a few days later. I had already checked the government link and downloaded the certificate myself. And then, a few minutes later, a WhatsApp message arrived from the shop with the certificate attached. He had been tracking it too. Quietly, without being asked. The job was done. Payment had been completed. There was absolutely no obligation for him to download that certificate and send it to me. It wasn't part of any brief. No one asked him to. But he did it anyway. And that one small gesture is what made all the difference. Now, he has a loyal customer. I go back to that shop for my documentation needs, without a second thought.

The lesson from that little shop: a small extra effort, offered consistently, compounds into something far greater over time.

Post-Sale Service: Where Most Businesses Drop the Ball

Here's the uncomfortable truth, most businesses, regardless of size, invest heavily in acquiring customers and almost nothing in retaining them. The sale is celebrated. What comes after is largely neglected. For MSMEs, this is a costly blind spot. These are the mistakes that play out repeatedly:

• The sale ends and so does the relationship: Once payment is received, attention moves to the next prospect. The existing customer is left to figure things out on their own. This is where trust erodes quietly, without a single complaint being raised because most dissatisfied customers simply don't come back.

• Process over people: Automated messages, standard responses, templated follow-ups none of these can replace the feeling of being genuinely looked after. Customers can tell the difference between a system responding to them and a person caring about them. MSMEs that rely entirely on automation for post-sale communication are solving the wrong problem.

• No confirmation, no closure: A transaction that ends without acknowledgment leaves the customer in uncertainty. Did it go through? Is everything in order? A simple confirmation as a message, a call, even a WhatsApp note costs next to nothing but signals professionalism

• Treating service as a cost, not an investment: When post-sale support is viewed purely as an operational expense, it gets understaffed and under-trained. The mindset shift that every MSME owner needs to make is that, “your most profitable customer is the one you already have”. Retention is cheaper than acquisition, every single time.

The MSME Advantage 

Large corporations have the budgets, the tools, and the playbooks. But they also have multiple layers of approvals, processes, and departments that slow down the very human instinct to simply help. MSMEs don't have that problem. You have proximity. You have agility. And you have the freedom to act on good intent without waiting for a policy to permit it.

The person at Hello Xerox didn't need a CRM system or a customer success framework. He needed thirty seconds and the right mindset. That is the entire playbook. So MSMEs simply Xerox this idea in your business. 

As an MSME owner, your edge isn't price or scale. It is the ability to make every customer feel like they matter because in a business your size, they genuinely do. Every business is unique, no doubt. But if you think it through, there are usually dozens of ways to genuinely delight a customer at zero cost to the company. It doesn't need a budget. It doesn't need a committee. It needs the right intent, and the willingness to go just one step further than expected.

That WhatsApp message took him thirty seconds. It earned him a customer for life.

As I close the books on FY2025-26, that's the thought I'm carrying into the new year, not a number, not a target. Just the quiet reminder that intent, expressed in small actions, is what builds something lasting.

Here's to FY2026. May we all find our thirty-second moments.

A lot has been said about AI. One statement from Mr.Vinod Khosla caught my eye. To quote - “By 2050, it'll be very clear that nobody needs jobs because with enough production of goods and services that are near free, you won't need jobs.”

This made me wonder, could it be possible? And secondly, what if it is possible?

Let us understand the base concept first.

The earliest form of economic activity started with the barter system. Over time, value got attached to particular produce and it started attracting better yields. This led to the introduction of money as a concept of value and today we are here.

Across this evolution, two constants remained:

• Buyer and seller

• Product or service of value

This unit transaction is what builds the economy at a larger level.

Machine and AI per se cannot create an economy. They are tools to create. But value perception is driven by human needs and wants. Even assuming super-intelligence, the trade that happens between machines will create only virtual value unless it ultimately serves human utility. Without human participation, perception and demand, it is difficult to anchor a real world economy.

Economy, at its core, is human.

In the future, it is quite possible that the scale of production, both products and services, due to AI might be so high that costs plummet to abysmally low levels.  Basic needs such as:

• Food

• Shelter

• Clothing

• Healthcare

• Transportation

• Communication

can be revolutionized through technology at scale.

This might lead to a phase where these are commoditized. I believe this is the point Mr. Khosla is trying to raise. Even with very little work done, one might be able to fulfill basic needs. It is also possible that Governments run social programs at scale to meet these needs efficiently.

People with aspirational needs might have to do more. This is where I see the barter system making a comeback, though in a very different manner. Not necessarily exchange of goods, but exchange of skills, creativity, reputation and intellectual contribution.

However, there is also a risk of dystopia if Governments fail to bridge the divide between the haves and the have-nots. Abundance without fair access can deepen inequality instead of solving it.

As someone who works closely with entrepreneurs, MSMEs and capital formation, I keep returning to one question - If survival becomes easy and production becomes automated, what becomes the true driver of value creation?

Capital, incentives and human aspiration may still matter deeply. Technology can reduce effort, but it cannot replace ambition, purpose and the desire to build. Interesting times ahead.

What are your thoughts about the future?

A rush of memories comes back as I start writing this blog. Pongal holds a deep meaning and is more than just a harvest festival. Yes, beyond the rituals and festivities, there is a quiet sense of gratitude, transition, preparation and hope. In many ways, Pongal mirrors the entrepreneurial journey more closely than we realise.

There are two central forces - Sun & Mother Nature. Pongal is the time we pay our gratitude and obeisances to both of them for showering us with bountiful harvests. Farmers work hard throughout the year. But they know that effort alone does not guarantee results. The harvest depends on so many factors aligning together. Pongal is the moment they acknowledge this reality. So the gratitude extends beyond the Gods to all those who played a role in the process - the land, the animals and the community. 

In business, effort shows up clearly. Time invested, risks taken and hard choices made. But outcomes are shaped by far more than effort alone. Timing, people, market behaviour and external forces play an equally important role. Success is rarely individual

Pongal reminds entrepreneurs to acknowledge the ecosystem that supports them. Customers who trusted early. The employees who stayed during difficult phases. Partners who enabled growth. 

Transition

Astronomically, Pongal marks a transition. The Sun begins its northward movement. Days grow longer and brighter. This idea of transition is very powerful. Entrepreneurship is a series of transitions. From survival to stability. From control to delegation. From working in the business to working on it. Each phase demands a shift in thinking. Many founders struggle during transitions. What worked earlier stops working. Old habits become constraints. The discomfort is real.

Pongal normalises transition. It tells us that change is not disruption. It is a progression. For entrepreneurs, recognising transitions early and adapting consciously makes the journey smoother.

Hope

Hope fills the heart. It shows up in prayers for the next season. Farmers know that the next season is never guaranteed, yet they prepare with faith that effort, time and nature will align once again. This form of hope is deeply practical. It is not built on optimism alone, but on acceptance of uncertainty. The belief is not that everything will go right, but that challenges can be faced when they arise. That belief is what sustains continuity.

Entrepreneurship operates on the same foundation. Founders move forward without complete visibility. Markets shift, assumptions break and plans evolve. Yet, the decision to keep building comes from hope grounded in learning and resilience. It is this steady, understated hope that allows entrepreneurs to persist, adapt and move forward, even when results are not immediately visible.

Preparation

Pongal reminds us that hope is only the beginning; what truly follows is thoughtful preparation. The harvest may be complete, but life does not pause. Preparation for the next cycle begins immediately. Fields are cleared. Seeds are selected. Tools are repaired. There is no complacency after success. Pongal quietly reinforces this discipline.

This is an important lesson for business owners.

A good year does not eliminate future risk. Strong revenues do not guarantee stability. Preparation must follow performance. Systems need strengthening. Processes need refinement. Teams need upskilling. Entrepreneurs who prepare during good times handle bad times better. 

Fresh Start 

There is a Tamil saying - “தை பிறந்தால் வழி பிறக்கும்.” When the month of Thai begins, new paths emerge. This is not about forgetting the past. It is about carrying lessons forward without baggage. Every cycle offers a chance to reset priorities, refine direction and realign intent.

For entrepreneurs, fresh starts are not tied to calendars. They are tied to clarity. Pongal simply reminds us to consciously create them.

Take a break 

Our ancestors understood the importance of pausing after effort. That is why the final day of Pongal was set aside for rest, family, travel and community bonding. It was a conscious break, not an indulgence. For entrepreneurs, rest is not a luxury. It is a requirement. Stepping back helps restore energy, perspective and clarity. Only when the mind settles does the next phase of work become meaningful.

இனிய பொங்கல்  நல்வாழ்த்துக்கள்