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.
