Government may do away with UPI subsidies as MDR revenue kicks in

Government may end UPI subsidies for small transactions as merchant fees are introduced. Taxpayer-funded incentives for UPI and RuPay transactions are being phased out. No new subsidies have been paid for transactions since April 2025. This shift aims to make the payment ecosystem self-sustaining and reduce taxpayer burden. Incentive disbursements have significantly decreased in recent fiscal years.

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