Budget 2025: Incentive cut for UPI with Rupay and low value, so much fund in budget

agency:AyraNews24x7W

Last update:01 February, 2025, 16:31 IST

Budget 2025: The government has cut incentives to promote Rupay debit cards and low -price UPI transactions and has only allocated Rs 437 crore only for the next financial year. Please tell that last year…Read more

New Delhi. The government has reduced incentives for Rupay and low value UPI. To promote digital payment, the government had allocated more than Rs 2000 crore fund in the last year to promote these schemes, which has reduced to 437 crores. Along with this, to promote digital payments, the central government has started the low -cost UPI and RuPay Debit Card Payment on Zero Cost. However, more than 1% MDR or merchant discount rate will be applied to transactions of more than Rs 2000.

This scheme was started in the year 2023, as banks and other payment system operators and app providers had to bear the cost for processing such transactions. In such a situation, the government had started the scheme of incentive to encourage him. Let us know that stakeholders (bank and UPI apps and NPCI) usually have to bear about 0.25% of the transaction price to process the UPI P2M (Peer-to-Crachant) transactions. Being zero MDR, stakeholders do not get their costs and their costs are made by the government through incentives.

Fund had increased the fund again last year
Initially, the government had set an initial fund of Rs 2,484 crore to increase this system. But as this system is increasing, the government is also reducing incentives for this. Last year, the government had allocated Rs 1,441 crore, which was later revised to Rs 2,000 crore. It may be that this time the government will also increase the incentive from Rs 437 crore.

UPI has gradually replaced the cash. In view of its public publicity, the government is being asked to reconcile on Zero MDR. In December 2024, there was a transaction of Rs 23.24 lakh crore through UPI. Whereas in December 2016 it was Rs 707.93 crore and in December 2020 it was Rs 4.16 lakh crore. Let us know that UPI payment mode is now live in 7 countries including UAE, Singapore, Bhutan, Nepal, Sri Lanka, France and Mauritius.