- The central government has taken a big step to increase digital payments.
- An incentive scheme of Rs 2600 crore was approved in the cabinet meeting.
- Cashback will be available on spending from BHIM UPI and RuPay Card.
New Delhi. To promote digital payments in the country, the central government approved a scheme of Rs 2600 crore in the cabinet meeting held on Wednesday. Under this, users will be given financial incentives on low-cost transactions done through BHIM UPI and RuPay debit cards. This incentive will be given by the bank. You can think of it as cashback. Under the scheme, banks will be given financial incentives to promote ‘Point of Sale’ (PoS) payment machines and e-commerce transactions using RuPay and UPI in the current financial year.
An official tweet said, “The Cabinet approved the incentive scheme to promote small amount transactions between individuals and merchants through RuPay Debit Card and BHIM-UPI.” This will help in creating a robust digital payments ecosystem. Low-cost and easy-to-use UPI Lite and UPI 123 Pay will also be promoted under the scheme.
Giving information about the decision of the cabinet, Union Minister Bhupendra Yadav said that an incentive of 0.4 percent will be given on digital payment through the Rupay card. At the same time, a 0.25 percent incentive will be available on transactions below Rs. 2000 through BHIM UPI. Apart from this, if you buy products and services like insurance, mutual funds, jewelry, and petroleum products from BHIM UPI, then you will get an incentive of 0.15 percent.
The boom in UPI payment
Bhupendra Yadav told that the transactions done through UPI had reached more than Rs 12 lakh crore in December. This month, more than 730 crore transactions were done through UPI. This is close to 54 percent of the country’s GDP. The total transaction value in November was Rs 11.9 lakh crore. In the year 2022, 7404 crore transactions were done through UPI, and a transaction of Rs 125 lakh crore was done. He said that to increase it further, an incentive of 2600 crores has been announced. Let us tell you that earlier in 2021 also, incentives were announced to promote these Bhim UPI and Rupay credit cards.