Views of CEOs of NPST, Spice Money and Findi on the Union cabinet's decision about an incentive scheme for Unified Payments Interface (UPI) payments of less than Rs2,000 for 2024–25 with an outlay of around Rs1,500 crore.
Dilip Modi, Founder & CEO, Spice Money
FinTech BizNews Service
Mumbai, March 20, 2025: The Union cabinet announced an incentive scheme for Unified Payments Interface (UPI) payments of less than Rs2,000 for 2024–25 with an outlay of around Rs1,500 crore. Banks will get a 0.15% incentive, one fifth of which will be incumbent on adequate performance of their infrastructure over the year.
Deepak Chand Thakur, Co-Founder and CEO, NPST; Mr Deepak Verma, MD and CEO, Findi and Mr. Dilip Modi, Founder & CEO, Spice Money, share their notable insights on this development:
Deepak Chand Thakur, Co-Founder and CEO, NPST:
The Indian Cabinet’s decision to extend UPI transaction incentives of up to Rs2,000 for small merchants is a strategic step towards sustaining the Vikshit Bharat movement and deepening digital payments adoption.
This scheme is particularly significant for rural and underserved areas, where cash remains the primary mode of transaction. It incentivizes banks to encourage micro and small vendors and kirana stores to embrace digital payments. Moreover, this measure will also lay the groundwork for a more integrated digital credit framework, creating new opportunities for small businesses to grow.
Additionally, the introduction of performance-linked incentives for banks — tied to system uptime and transaction success rates — is a welcome move. This will drive banks and PayTech providers to invest in robust infrastructure, enhancing the reliability of digital payment, particularly in semi-urban and rural regions where network challenges persist.
While government incentives have played a crucial role in driving UPI adoption, policymakers must consider a balanced revenue model — one that ensures UPI remains affordable and accessible for merchants while being commercially viable and sustainable for banks and PayTech providers.
India’s payments revolution is at a critical juncture. Ensuring long-term scalability, innovation, and inclusivity will require a collaborative approach between the government, regulators, banks, and fintech players. At NPST, we remain committed to bridging these gaps, driving innovation, and strengthening the digital infrastructure that powers the nation’s financial future."
Dilip Modi, Founder & CEO, Spice Money:
“The Cabinet’s approval of Rs1,500 crore incentive for UPI transactions is a significant step towards strengthening India’s digital payments ecosystem by promoting transactions under INR 2000. This move will encourage greater adoption of low-value digital transactions and enhance financial inclusion at the grassroots level. This initiative is not just about boosting digital adoption, it will serve as an enabler for India's vast network of small entrepreneurs, empowering them with seamless, cost-effective, and secure payment solutions. By accelerating digital penetration in Bharat, this step will unlock new economic opportunities for millions of micro and small businesses, enhancing their financial resilience and driving inclusive growth in the digital economy.
Non-bank Business Correspondents (BCs) remain the backbone of India’s fintech ecosystem, enabling last-mile financial services in remote and underserved regions. Continued support for digital transactions, coupled with policies that recognize and uplift BCs, will be instrumental in making financial services truly accessible to all.
As a leading fintech, we believe such incentives will accelerate digital penetration in Bharat, empowering small businesses and individuals to participate seamlessly in the digital economy. An incentive system for PPI operating in the inclusion segment would also be beneficial, ensuring that digital financial services reach even the most underserved communities. At Spice Money, we are committed to bridging the urban-rural digital divide by equipping our vast network of Adhikaris/Merchants with the right tools to drive UPI adoption across Bharat.”
Deepak Verma, MD and CEO, Findi:
“We welcome the government’s initiative to incentivize small-value BHIM UPI transactions, as it will encourage more businesses and customers to participate in the formal economy. This move enhances convenience and financial inclusion for the underbanked and underserved, particularly in rural and semi-urban areas. For merchants, especially financial service providers, it creates opportunities to extend credit and other essential financial services to nearly 250 million underbanked individuals. While cash remains a crucial part of the financial ecosystem especially through ATMs and Micro ATMs, which serve as key access points, we see this initiative as a complementary step towards expanding financial access for all, especially the underserved.”
