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Below the Quote on Cabinet approves UPI incentive of Rs.1,500 crore to banks by Mr. Dilip Modi, Founder & CEO, Spice Money

“The Cabinet’s approval of Rs.1,500 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.”

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