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Incentive Scheme for Promotion of RuPay Debit Cards and Low-Value BHIM-UPI Transactions (P2M)

  • IASbaba
  • December 16, 2021
  • 0
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Incentive Scheme for Promotion of RuPay Debit Cards and Low-Value BHIM-UPI Transactions (P2M)

Part of: Prelims and GS III – Economy

Context The Union Cabinet has approved an incentive scheme worth ₹ 1,300 crore to promote RuPay Debit cards and low-value (upto Rs. 2,000) BHIM-UPI transactions (Person-to-Merchant (P2M)] in the country.

Key takeaways 

  • Under the scheme, the acquiring banks will be incentivised by the Government, by paying percentage of value of transactions (P2M) done through RuPay Debit cards and low-value BHIM-UPI modes of payments, for a period of one year (w.e.f. April 01, 2021).
  • Significance: 
    • Facilitate acquiring Banks in building a robust digital payment ecosystem 
    • Promote RuPay Debit card and BHIM-UPI digital transactions, across all sectors and segments of the population 
    • Deepen the digital payments in the country.
    • Help in making accessible digital modes of payments to unbanked and marginalized populations, who are outside of the formal banking and financial system.
  • Background: 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.

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