New Delhi: The Union Cabinet today has approved an incentive scheme to promote RuPay Debit cards and low-value (uptoRs. 2,000) BHIM-UPI transactions (Person-to-Merchant (P2M), at an estimated financial outlay of Rs.1,300 crore for a period of one year with effect from April 01, 2021.
Under the scheme, the acquiring banks will be incentivised by the Government, by way of paying percentage of value of transactions (P2M) done through RuPay Debit cards and low-value BHIM-UPI modes of payments.
“This scheme will facilitate acquiring Banks in building 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 of digital payments in the country,” a Cabinet note stated. It added that this 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 scheme, which has been formulated in compliance with the Budget announcements (FY 2021-22) by the Government to give further boost to digital transactions in the country, is expected to further spur research and development and innovation in fintech space, and will help the Government in further deepening of digital payments in various part of countries.
– global bihari bureau
