Government May Phase Out UPI Subsidies as Merchant Fees Begin to Kick In
India may be preparing to wind down taxpayer-funded incentives for UPI and RuPay transactions as merchant discount revenue begins to enter the payments system, a shift that could mark the end of the stateโs heavy subsidy role in digital payments. No new subsidies have been paid for transactions since April 2025, underscoring a policy transition toward a more self-sustaining ecosystem and lower fiscal burden.
