Cabinet approves incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions
New Delhi, December 16, 2021
The Union Cabinet on Wednesday approved an incentive scheme to promote RuPayDebit cards and low-value (up to Rs 2,000) BHIM-UPI transactions (Person-to-Merchant) in the country.
Under the scheme, the acquiring banks will be incentivised by the Government, by way of paying a percentage of the value of transactions (P2M) done through RuPay Debit cards and low-value BHIM-UPI modes of payments, at an estimated financial outlay of Rs 1,300 crore for one year from April 1, 2021.
The scheme will facilitate acquiring banks in building a robust digital payment ecosystem and promoting RuPay Debit card and BHIM-UPI digital transactions, across all sectors and segments of the population and further deepening digital payments in the country, an official press release said.
It will also help in making accessible digital modes of payments to unbanked and marginalized populations, who are outside of the formal banking and financial system, the release said.
"India today is one of the most efficient payments markets in the world. These developments have been the outcome of the initiatives of the Government and innovation by various players in the digital payment ecosystem. The scheme will further spur research and development and innovation in the fintech space and will help the Government in further deepening digital payments in various parts of the country.
"The scheme has been formulated in compliance with the Budget announcements (FY 2021-22) by the Government to give a further boost to digital transactions in the country," the release added.