The government has provided subsidies for purchases of less than Rs 2,000 until recently. Person 2 merchant transactions cause a yearly burden of Rs 12,000 crore. Less than Rs 2,000 transactions weigh Rs 4,000 crore.
Soon, you must pay a fee to utilize the UPI payment app. The government has dramatically reduced the subsidy paid to retailers on UPI service. Companies are thus getting ready to retrieve it from consumers. Using the UPI app would now be costly in such a scenario. Companies have also started billing consumers fees. For a lot of transactions, Google Pay now charges fees. Google Pay has slapped 0.5 per cent and 1 per cent fees on debis and credit cards. Additionally, Paytm and PhonePe are starting to charge fees for mobile recharging.
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It is worth noting that till today, the government has been offering a subsidy on transactions below Rs 2,000. Person 2 merchant transactions carry a yearly burden of Rs 12,000 crore. The burden of transactions is less than Rs 2,000 and is Rs 4,000 crore.
When and in what amount was a subsidy received?
For this item, a subsidy of Rs 2,600 crore was received from the government in the year 2023. Concurrent with this was the Rs 2,484 crore subsidy for 2024. This subsidy has been dropped to Rs 477 crore for 2025 concurrently.
UPI has evolved into a significant aspect of our existence in the modern era. An average user completes between 60 to 80 per cent of transactions using UPI daily. This is why crores of UPI transactions—through which transactions valued in hundreds of crores of rupees occur daily in India. Still, many businesses throughout the nation offer UPI online payment capability.
Apart from shopping at stores, UPI is applied to many other services. Today, people use g UPI for petrol-diesel, mobile recharge, DTH recharge, bill payments, railway-flight tickets, cinema tickets, fasting gas booking, money transfer, metro card recharge, insurance premiums, etc. Under such circumstances,manyf people will suffer should fees be applied for using UPI payment apps.
