Breaking News
With an estimated budget of Rs 1,500 crore, the initiative will be implemented from April 1, 2024, to March 31, 2025, focusing on low-value UPI transactions under Rs 2,000, primarily benefiting small merchants.
In a major step towards promoting digital payments in India, the Union Cabinet has approved an Incentive Scheme to boost low-value BHIM-UPI transactions among small merchants. Under this initiative, businesses accepting payments up to INR 2,000 will receive a 0.15% incentive per transaction, further driving the adoption of UPI-based transactions across the country.
The scheme is strategically designed to enhance digital transactions in tier III to VI cities, particularly through platforms like UPI 123PAY and UPI Lite, which enable feature phone users and small vendors to participate in cashless transactions seamlessly. This initiative aligns with the government’s broader vision of a cashless economy, ensuring financial inclusion while strengthening the country’s digital payment infrastructure.
Additionally, the UPI policy changes under this scheme will provide incentives to payment system participants, including banks and fintech firms, to support the seamless functioning of BHIM-UPI promotion efforts. By reducing dependency on cash and enhancing transaction security, the move aims to empower businesses, expand digital adoption, and create a more efficient, transparent, and inclusive financial ecosystem in India.
Additionally, the UPI policy changes under this scheme will provide incentives to payment system participants, including banks and fintech firms, to support the seamless functioning of BHIM-UPI promotion efforts. By reducing dependency on cash and enhancing transaction security, the move aims to empower businesses, expand digital adoption, and create a more efficient, transparent, and inclusive financial ecosystem in India.
The scheme aims to enhance financial access for small merchants by providing greater opportunities to adopt digital payment solutions, improving cash flow and credit accessibility. Additionally, citizens will benefit from seamless UPI transactions without extra charges, driving wider adoption of digital payments across India. It also aims to strengthen the digital payment infrastructure, especially in underserved areas, and support the wider adoption of secure and reliable payment solutions.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
