OmniCard Launches India’s First UPI-Based Flexi Benefits Wallet

India’s First UPI-Enabled Flexi Benefits Wallet

OmniCard Launches India’s First UPI-Based Flexi Benefits Wallet: OmniCard, a corporate spend management platform developed by Eroute Technologies Private Limited, has introduced India’s first UPI-based Flexi Benefits Wallet, called the Flexi Benefits Basket. The platform enables employees to manage tax-efficient benefits through a single digital wallet while making seamless UPI Scan-and-Pay transactions.

Built on an RBI-licensed Prepaid Payment Instrument (PPI) platform, the wallet can be used at nearly 60 million UPI-enabled merchants across India. The innovation simplifies employee benefit management while supporting secure and tax-compliant digital payments.

Static GK fact: Unified Payments Interface (UPI) was launched by the National Payments Corporation of India (NPCI) in 2016. It enables instant real-time bank-to-bank digital transactions through mobile applications.

Features of the Flexi Benefits Basket

The Flexi Benefits Basket serves as a single employee-controlled digital wallet that replaces multiple benefit cards. Employees can conveniently access and utilize various employer-provided allowances through one platform.

Key features include:

• UPI Scan-and-Pay functionality
• Single digital wallet for multiple benefits
• Real-time digital payments
• Secure transactions through an RBI-licensed PPI
• Acceptance at nearly 60 million UPI merchants

The platform improves convenience while expanding the usability of employee benefit allowances across India.

Tax-Efficient Employee Benefits

The wallet allows employees to utilize tax-efficient allowances across multiple approved categories without carrying separate cards.

Eligible benefit categories include:

• Meals
• Fuel
• Telecom
• Books & Periodicals
• Gadgets
• Other approved employee benefits

The platform enables employees to maximize tax savings while ensuring simple and transparent benefit utilization.

Static GK Tip: A Prepaid Payment Instrument (PPI) is a payment instrument authorized by the Reserve Bank of India (RBI) that allows users to store money digitally and make cashless transactions within prescribed regulatory limits.

Merchant Category Code Controls

A major feature of the platform is its Merchant Category Code (MCC)-based spending controls. These controls ensure that employee benefits are spent only at eligible merchant categories.

The system helps:

• Maintain tax compliance
• Prevent misuse of benefit allowances
• Improve employer monitoring
• Ensure efficient administration of employee benefits

This automated mechanism enhances transparency while reducing compliance risks.

Alignment with Income-tax Rules, 2026

The launch aligns with the Income-tax Rules, 2026, notified by the Central Board of Direct Taxes (CBDT) and effective from 1 April 2026.

One of the most significant changes is the increase in the tax-free meal benefit from ₹50 per meal to ₹200 per meal under prescribed conditions.

Key annual tax-free benefit limits include:

• Meals: Up to ₹1,05,600
• Telecom: Up to ₹36,000
• Books & Periodicals: Up to ₹50,000

Eligible employees can receive tax-efficient benefits exceeding ₹2 lakh annually, structured within their existing Cost to Company (CTC).

Static GK fact: The Central Board of Direct Taxes (CBDT) functions under the Department of Revenue, Ministry of Finance, and is responsible for administering direct tax laws in India.

Significance of the Launch

The introduction of the Flexi Benefits Basket marks a major advancement in India’s fintech ecosystem by integrating UPI, employee benefits, and tax compliance into a single platform. It supports digital payments, simplifies benefit administration, reduces dependence on physical cards, and enhances financial flexibility for employees while improving compliance for employers.

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OmniCard Launches India’s First UPI-Based Flexi Benefits Wallet: