OmniCard Introduces India’s First UPI-Based Flexi Benefits Wallet for Employee Tax Savings

OmniCard, a corporate spend management platform developed by Eroute Technologies Private Limited, has launched India’s first Unified Payments Interface (UPI)-based Flexi Benefits Wallet, known as the Flexi Benefits Basket. The innovative solution provides employees with a single digital wallet to manage tax-efficient employee benefits while enabling seamless UPI Scan-and-Pay transactions.

Built on OmniCard’s Reserve Bank of India (RBI)-licensed Prepaid Payment Instrument (PPI) platform, the wallet can be used at nearly 60 million UPI-accepting merchants across India, making employee benefit spending more convenient, transparent, and tax-compliant.

What is the OmniCard Flexi Benefits Basket?

The Flexi Benefits Basket is a single employee-controlled digital wallet that enables employees to manage multiple tax-saving benefits through one platform.

Instead of using separate meal cards or different wallets for various allowances, employees can make payments directly using UPI Scan-and-Pay at eligible merchants.

The platform simplifies employee benefit management while improving flexibility and user convenience.

Key Features of the Platform

1. UPI-Based Digital Wallet

The wallet allows employees to make payments using:

• UPI Scan-and-Pay
• Single Digital Wallet
• Real-time Digital Payments

This eliminates the need to carry multiple employee benefit cards.

2. RBI-Licensed PPI Platform

The solution operates on OmniCard’s RBI-licensed Prepaid Payment Instrument (PPI) infrastructure, ensuring secure and regulated digital transactions.

3. Wide Merchant Acceptance

Employees can use the wallet at approximately:

• 60 million UPI-enabled merchants across India.

This significantly expands the usability of employee benefit allowances.

Tax-Efficient Benefit Categories

Employees can allocate their benefit allowances across multiple eligible categories, including:

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

The platform provides flexibility in utilizing employer-provided allowances while maximizing tax savings.

Merchant Category Code (MCC)-Based Controls

One of the unique features of the wallet is the use of Merchant Category Code (MCC)-based spending controls.

These controls ensure that:

• Benefits are spent only at eligible merchants.
• Tax compliance is maintained.
• Misuse of benefit allowances is minimized.
• Employers can administer employee benefits more efficiently.

Changes Under 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.

Revised Tax-Free Meal Benefit

The revised rules increase the employer-provided tax-free meal benefit from:

• ₹50 per meal → ₹200 per meal

The revised limit is applicable under:

• Old Tax Regime
• New Tax Regime

subject to prescribed conditions.

As a result, employees can receive up to ₹1,05,600 annually as a tax-free meal benefit.

Additional Tax-Saving Benefits

Beyond meal benefits, OmniCard also enables tax-efficient allowances in several other categories.

Some major limits include:

Benefit Category	Maximum Annual Tax-Free Benefit
Meals	₹1,05,600
Telecom	Up to ₹36,000
Books & Periodicals	Up to ₹50,000

Combined together, eligible employees can receive tax-free benefits exceeding ₹2,00,000 annually, structured within their Cost to Company (CTC) without increasing employer costs.

About OmniCard

OmniCard was launched in July 2021 as an Artificial Intelligence (AI)-powered Corporate Spend Management Platform.

It provides businesses with solutions for:

• Corporate Expense Management
• Employee Benefit Administration
• Digital Payments
• Business Spending Controls
• Tax-Efficient Benefit Distribution

The latest Flexi Benefits Wallet further strengthens OmniCard’s position in India’s fintech and employee benefits ecosystem.

Significance of the Launch

The launch is significant because it:

• Introduces India’s first UPI-enabled Flexi Benefits Wallet.
• Simplifies employee benefit management.
• Promotes digital payments.
• Enhances tax efficiency for employees.
• Improves employer compliance.
• Supports India’s rapidly growing digital payments ecosystem.
• Reduces dependence on physical benefit cards.

Key Takeaways

• OmniCard has launched India’s first UPI-based Flexi Benefits Wallet.
• The platform is developed by Eroute Technologies Private Limited.
• It is built on an RBI-licensed Prepaid Payment Instrument (PPI) platform.
• Employees can use the wallet at 60 million UPI-accepting merchants.
• Benefits include Meals, Fuel, Telecom, Books & Periodicals, Gadgets, and other eligible categories.
• The platform uses Merchant Category Code (MCC)-based controls to ensure tax compliance.
• Under the Income-tax Rules, 2026, the tax-free meal benefit has increased to ₹200 per meal.
• Employees can receive annual tax-free benefits exceeding ₹2 lakh, subject to eligibility and prescribed conditions.