Parliamentary Committee Stresses Viable Revenue Model for Sustained UPI Growth
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Panel flags UPI funding gap, urges sustainable revenue model for growth
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CNBC TV18•13-03-2026, 14:01
Panel flags UPI funding gap, urges sustainable revenue model for growth
•A Parliamentary panel identified a structural funding gap in the government's incentive scheme for RuPay debit cards and low-value BHIM-UPI P2M transactions.
•The panel stressed the need for a sustainable revenue model to ensure the long-term growth and viability of the UPI ecosystem.
•Current government allocation of ₹2,000 crore for 2026-27 covers only 11% of actual digital payments industry costs due to the zero-MDR policy.
•UPI is projected to expand significantly, handling 100-150 billion transactions monthly and adding 600 million new users.
•The Department of Financial Services is recommended to explore a self-reliant, tiered revenue model to reduce reliance on government funds.
