Budget 2026: UPI Incentives Soar Five-Fold, But Industry Demands More
Budget
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CNBC TV18•01-02-2026, 14:18
Budget 2026: UPI Incentives Soar Five-Fold, But Industry Demands More
- •Budget 2026 significantly increases incentives for RuPay debit cards and low-value BHIM-UPI person-to-merchant transactions.
- •The revised estimate for FY26 UPI incentives is ₹2,196 crore, a five-fold jump from the initial ₹437 crore.
- •FY27 allocation is set at ₹2,000 crore, indicating continued government support for the zero-MDR digital payments ecosystem.
- •Fintech stocks like One 97 Communications Ltd (Paytm) and One Mobikwik Systems Ltd saw an initial rise.
- •Industry bodies, including the Payments Council of India, argue that the increased allocation is still insufficient for sustainable processing of daily UPI transactions, proposing a regulated MDR for large merchants.
Why It Matters: Despite a five-fold increase in UPI incentives, the industry seeks further measures for sustainable growth.
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