Nod for incentive scheme for promotion of RuPay debit cards, BHIM-UPI transactions

The Union Cabinet has approved the incentive scheme to promote RuPay debit cards and low-value BHIM-UPI transactions. Acquiring banks, under the scheme, will be incentivized by the government by way of paying percentage of value of transactions done through RuPay debit cards and low-value BHIM-UPI modes of payments. This will be at an estimated financial outlay of Rs 1,300 crore for a period of one-year.

Ashwini Vaishnaw, Electronics and IT Minister, said the government will reimburse transaction charges levied on digital payments made by persons to the merchant as part of the merchant discount rate. He highlighted 423 crore digital transactions valued at Rs 7.56 lakh crore took place in the month of November.

An official statement said this 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.

It should be noted that this scheme was formulated in compliance with the Budget announcements FY2021-22 by the government to give a further boost to digital transactions in India.

Meanwhile, the MeitY is working on strengthening of digital payment infrastructure. It is creating awareness through promotions of digital payments with all the stakeholders to achieve the government’s vision of making citizens of this country digitally empowered. There is a dedicated Digidhan Mission in MeitY for building strategies and approaches in collaboration with all stakeholders.

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The Minister for Electronics and IT, on December 5, had launched the Digital India programme with the vision to transform India into a digitally empowered society and knowledge economy. The Government of India has accorded the highest priority to the promotion of digital payments in order to bring each and every segment of the country under the formal fold of digital payment services.

The government wants to provide facility for seamless digital payment to all citizens in a convenient, easy, affordable, quick and secured manner.