For 2025-26, the central government allocated Rs 427 crore for digital payment incentives (Image: Freepik) Show Quick Read Summary is AI Generated. Newsroom Reviewed

Payment operators are poised to ask the government for an increase in UPI subsidy for low-value payments, in order to sustain the zero-MDR regime, according to a report from The Economic Times .

Payment aggregators believe the current allocation is far below what is required to keep the UPI's zero-cost model financially stable.

For 2025-26, the central government allocated Rs 427 crore for digital payment incentives. This is well below the Rs 2,000 crore allocation that was made in the previous year.

To put things into perspective, India's digital payments ecosystem collectively spends Rs 5,000-6,000 crore every yea

See Full Page