Union Cabinet Approves Rs 1,300 Crore Incentive Scheme For Promotion Of RuPay Debit Cards, Low-Value BHIM UPI TransactionsRuPay card

The Union Cabinet, chaired by the Prime Minister Narendra Modi, on Wednesday (15 December) approved an incentive scheme to promote RuPayDebit cards and low-value BHIM-UPI transactions (Person-to-Merchant (P2M)] in the country.

Under the scheme, the acquiring banks will be incentivised by the Government, by way of paying percentage of value of transactions (P2M) done through RuPay Debit cards and low-value (up to Rs 2,000) BHIM-UPI modes of payments, at an estimated financial outlay of Rs 1,300 crore for a period of one year with effect from 1 April 2021, said an official release.

This scheme will facilitate acquiring banks in building 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, the release said.

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, it added.

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.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement