The Union Cabinet led by Prime Minister Narendra Modi on Wednesday approved an incentive scheme worth Rs 1,300 crore for the promotion of RuPay Debit Cards and low-value (up to Rs 2,000) BHIM-UPI transactions (person-to-merchants) 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 a period of one year with effect 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 of digital payments in the country.
"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," an official statement said.
"A scheme has been approved to provide incentives to encourage digital transactions through RuPay Debit Card and BHIM UPI of small amounts. It will incur an expense of around Rs 1,300 crore," Union Minister Anurag Thakur said while addressing the media after the cabinet meeting.
Union Electronics and IT Minister Ashwini Vaishnaw said that in the coming one year "the government will invest around Rs 1,300 crore so that more and more people move towards digital payments."
He also said that 423 crore digital transactions valued at Rs 7.56 lakh crore took place in November.
The scheme will 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.
The scheme 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.
( With inputs from ANI )
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