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Industry expects around Rs 600 crore loss as government nixes RuPay subsidy
Economic Times
·
4m ago
Medial
The Indian digital payments industry faces a potential Rs 500-600 crore loss due to the government's withdrawal of subsidy support on RuPay debit cards, as reported by Economic Times. Previously, subsidies helped offset losses from the zero-MDR mandate. With the subsidy for UPI payments reduced to Rs 1,500 crore for FY25, down from expectations of Rs 5,500 crore, fintechs and banks face sustainability challenges. Industry representatives are contemplating advocating for MDR revival to sustain RuPay's competitiveness.
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To ease financial squeeze, fintechs mull seeking MDR restoration or higher subsidy
Economic Times
·
4m ago
Medial
The fintech industry is urging the Indian government to restore merchant discount rates (MDR) or increase subsidy allocations for Unified Payments Interface (UPI) transactions, claiming the current Rs 1,500 crore allocation is insufficient for growth. The government recently removed incentives on RuPay debit cards and large merchant transactions, further straining the sector. Industry leaders suggest introducing a low MDR for merchants with higher turnovers to address funding issues while maintaining zero MDR for smaller merchants.
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Govt reduces budgetary allocation for UPI and RuPay small value payments to Rs 1,441 crore
Economic Times
·
1y ago
Medial
The budget's reduced allocation of Rs 1,441 crore for incentivizing digital payments through RuPay debit cards and Unified Payments Interface (UPI) has caused concern among payment companies. This amount is significantly lower than the initial plan of Rs 3,500 crore mentioned in the interim budget. Payment startups are seeking clarification on how this reduced budget allocation will impact their businesses. The payments industry has been asking for subsidy support for the zero Merchant Discount Rate (MDR) regime in order to compensate for revenue loss. With UPI becoming mainstream, there is a need to reevaluate the zero MDR regime.
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Air India warns of $600 million hit from Pakistan airspace ban, seeks govt support: Report
Business Today
·
3m ago
Medial
Air India, owned by the Tata Group, faces a potential $600 million loss if Pakistan’s airspace stays closed to Indian carriers for a year. The airline has requested government financial support to mitigate the impact. In a letter to the Civil Aviation Ministry, Air India proposed a subsidy model to offset projected annual losses exceeding Rs 50 billion due to longer routes and increased fuel consumption, as reported by Reuters.
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Rupay credit card payments through UPI hits the MDR speedbreaker
Money Control
·
1y ago
Medial
Rupay credit card transactions on UPI have increased from Rs 50-60 crore daily in May to Rs 100 crore daily in October, with Rupay's share of new credit card issuances growing to 25%. However, around 15-20% of merchants have requested their banks to disable Rupay credit card payments on UPI due to the higher merchant discount rate (MDR). The fear of lower or zero MDR for Rupay credit cards on UPI has led to a scramble among banks to distribute more Rupay credit cards to safeguard their interchange fees.
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Banks, fintechs await UPI subsidy payouts amid cuts in total outlay
Economic Times
·
5m ago
Medial
Banks and fintech companies are waiting for the union government's subsidy payments to promote digital payments, as applications for disbursement have been filed but funds not yet released. This subsidy program helps compensate banks for losses from free merchant payments, but the budget for it was cut from Rs 3,500 crore to Rs 437 crore. Industry leaders are considering reintroducing merchant discount rates (MDR) for larger merchants to address financial strain on the UPI ecosystem.
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In Charts: Removing GST on health insurance may hurt Govt, but benefit India
Money Control
·
10m ago
Medial
The Indian government may face a revenue loss if the Goods and Services Tax (GST) on health and life insurance is reduced from 18 percent to 5 percent. The current GST on health insurance has brought in around Rs 8,262.9 crore in revenue. If the reduced rate is implemented, the projected revenue loss could be around Rs 6,000 crore to Rs 8,300 crore. However, the lower tax rate may encourage more people to obtain insurance coverage, which is currently low in India. The issue has been referred to a group of ministers for a decision by October 31.
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EV startup Okinawa receives a shot in the arm, raises Rs 60 Cr
YourStory
·
1m ago
Medial
Okinawa Autotec, an electric vehicle startup, has raised Rs 60 crore from Dhruv Khush Business Ventures amid challenges like funding issues, declining market share, and reduced revenues. The firm's troubles worsened after government notices accused them of subsidy mismanagement. They previously benefitted from the Electric Mobility Promotion Scheme but faced scrutiny for importing parts instead of sourcing locally. The company had to pay back Rs 116.84 crore to the government but managed to reduce their financial losses.
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Government cuts funding for RuPay and BHIM-UPI incentive scheme in Budget 2025
YourStory
·
6m ago
Medial
The Indian government has reduced funding for the RuPay and BHIM-UPI incentive scheme from Rs 2,484.97 crore in FY 2023-24 to Rs 437 crore by FY 2025-26, cutting it by 82%. Initially set at Rs 1,441 crore for FY 2024-25, incentives were later revised to Rs 2,000 crore. UPI incentives are crucial due to the eliminated Merchant Discount Rate (MDR), supporting small players in digital payments. With UPI's market share growing to 83%, NPCI extended the compliance deadline for third-party app volume limits to 2026.
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India to decide on rare earth magnet subsidy scheme within 20 days: Kumaraswamy
Economic Times
·
1m ago
Medial
The Indian government will decide on a subsidy scheme for domestic production of rare earth magnets in 15-20 days, said Union Minister H D Kumaraswamy. Discussions with stakeholders are underway to determine the subsidy amount. A subsidy exceeding ₹1,000 crore requires Union Cabinet approval. A scheme valued at ₹3,500-5,000 crore is being finalized to boost rare earth mineral and magnet production, aiming to reduce reliance on Chinese imports and enhance local manufacturing capabilities.
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WebEngage reports flat revenue in FY24; losses spike 3x
Entrackr
·
8m ago
Medial
WebEngage’s revenue from operations increased by 9.5% to Rs 140.69 crore in FY24 from Rs 128.46 crore in FY23, shows its consolidated financial statement filed with the Registrar of Companies (RoC). The company reported a loss of Rs 70.71 crore in FY24, which is three times higher than the previous year. The total expenses amounted to Rs 221.08 crore, with significant costs in employee benefits, IT, and advertising. Despite the losses, WebEngage has over 600 clients and a cash and bank balance of Rs 52.57 crore.
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