Government allocates ₹2,000 crore to keep UPI transactions free
Business
The government just set aside ₹2,000 crore to keep UPI transactions free for users and to subsidize RuPay debit card payments in 2026.
Even though UPI saw a massive jump—over 21 billion transactions in January alone—the subsidy is slightly higher than the actual FY 2024-25 allocation of ₹1,923 crore but lower than the revised estimate of ₹2,196 crore for FY 2025-26, and is much less than what the industry was hoping for.
Payment companies seek bigger subsidies
Payment companies say the current support isn't enough to keep up with India's digital payment boom.
They're asking for bigger subsidies (₹10,000-12,000 crore) or a return of merchant fees on big transactions to help cover costs.
For now, though, using UPI stays free for everyone—thanks to government backing.