New Delhi: In Budget 2025-26, government financial incentive has been reduced by 78 per cent in the Unified Payment Interface (UPI) and RuPay Debit Card to promote small price transactions. In order to encourage such transactions in the financial year 2026, the budget in the budget. 437 crore rupees have been allocated for this scheme, which is more than Rs 100 crore in a year ago. It was Rs 2,000 crore.
But the final allocation to promote these Peer-to-Crachant (P2M) UPI transactions and RuPay Debit Card Payment is higher than the initial cost. The government had earlier announced Rs 100 crore as incentive in the financial year 2025. 1,441 crore was allocated for this, which was later increased to Rs 1,441 crore. A provision of Rs 2,000 crore was made.
This is the second consecutive year when the incentives given to promote digital transactions have been reduced in the financial year 2023. The government initially announced Rs 100 crore in April 2022. This incentive was started by paying Rs 2,600 crore.
This provision may increase the final cost slightly, but it is still not enough to cover the cost of Paytm transactions. It is estimated that the industry will need at least Rs 100 crore to meet these costs. A subsidy of 4 to 5 thousand crores will be required.
The fee charged from traders to complete transactions by payment processing companies or banks is called NDR. Bank and digital payment processing companies bear the cost of processing transactions on India’s physical payment system.
The Payment Council of India said, “We were eagerly waiting for this encouragement since April last year.” In the absence of zero merchant exemption rate, players and banks of this region are waiting for the outstanding payment of this financial year.
