The government is considering ending taxpayer-funded subsidies for small UPI transactions as merchant discount revenue begins to flow into the payments ecosystem, marking a significant shift in India’s digital payments policy. The move reflects a broader effort to make UPI and RuPay more self-sustaining after years of public support, with no fresh subsidy payments made since April 2025.
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"Government May Phase Out UPI Subsidies as Merchant Fees Begin to Support Payments Network"
The government is considering ending taxpayer-funded subsidies for small UPI transactions as merchant discount revenue begins to flow into the payments ecosystem, marking a significant shift in India’s digital payments policy. The move reflects a broader effort to make UPI and RuPay more self-sustaining after years of public support, with no fresh subsidy payments made since April 2025.
Government May Phase Out UPI Subsidies as Merchant Fees Begin to Support Payments Network
R
RDU Global Wire
Banking, Fintech & Insurance Desk
New Delhi, India Just now (02:41 AM IST)•5 min read
The government is considering ending taxpayer-funded subsidies for small UPI transactions as merchant discount revenue begins to flow into the payments ecosystem, marking a significant shift in India’s digital payments policy. The move reflects a broader effort to make UPI and RuPay more self-sustaining after years of public support, with no fresh subsidy payments made since April 2025.
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