Budget 2023-24: Govt Cuts Subsidy For Fintechs, Banks On UPI Transactions
India, Feb. 2 -- The government has cut down the subsidy meant for compensating fintech startups and banks that facilitate UPI transactions in its Union Budget 2023-24 announcements.
From an outlay of INR 2,137 Cr in the last budget, the government has cut down the incentive allocation for fintechs and banks to INR 1,500 Cr, a reduction of nearly 30%.
Incidentally, during the 2021-22 budget, the government had only set aside INR 200 Cr to compensate UPI players as a subsidy. However, industry stakeholders, including the Reserve Bank of India (RBI), said the move might prove detrimental to the growth of UPI. As such, the government ended up bumping the outlay of the incentive scheme by more than 10X in the 2022-23 budget.
On the other h...
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