India, Feb. 5 -- India's UPI ecosystem is at a crossroads. As transactions volume and value reach record levels, the government is gently pushing UPI players towards self-reliance. The clearest signal is that the central government's incentive outlay towards UPI and RuPay in FY27 has shrunk to INR 2,000 Cr, even as the ecosystem has grown to new heights.

UPI transactions recorded a 32.5% YOY growth in volume terms in 2025 at 228 Bn transactions as against 46.2% YOY spike in 2024 at 172 Bn transactions. With growing international presence, it's not just the Indian market that has benefitted from this wave. So the fact that the central government is continuing to support this growth through public spending is great, right?

It's not as sim...