Is inclusive growth possible under market economy? State the significance of financial inclusion in achieving economic growth in India.
Question source: forumias.com
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Centre and banks to settle UPI subsidy once merchant charges begin · 26 September 2026 · Covers one part · use it in the body
Use UPI to show inclusion achieved through state subsidy, and the test of whether a partly market-priced system can stay inclusive.
- UPI has run on zero MDR since January 2020, with government reimbursing banks: ₹1,389 crore in 2021-22, peaking at ₹3,631 crore in 2023-24, against industry estimates of about ₹20,000 crore annual running cost.
- The new 0.4% MDR on merchant payments above ₹2,000, capped at ₹300, is borne by merchants; low-value payments and small merchants stay free.
- Risks: traders may push high-value buyers back to cash, hurting formalisation; CAIT has asked for the charge to be postponed.
Also related
- PM Jan Dhan Yojana
Jan Dhan accounts as the first step of the JAM trinity enabling credit, insurance and DBT for the poor.