The union cabinet today approved an incentive scheme to promote the use of RuPay debit cards and low-value BHIM-UPI transactions. The scheme, which will promote the use of RuPay debit cards and person to merchant UPI transactions upto Rs 2,000, was approved in a cabinet meeting on Wednesday chaired by Prime Minister Narendra Modi.
Under the scheme, the govt will incentivise the acquiring banks by paying a percentage of value of the transactions done through RuPay and BHIM-UPI systems. According to estimates, around Rs 1,300 crore will be spent on the scheme for the financial year 2021-2022.
Talking about the scheme, Union Minister Ashwini Vaishnaw said that to further develop the RuPay and UPI payment systems, the government of India will reimburse the MDR (Merchant Discount Rate) in the person-to-merchant part of the transactions. He said that this incentive will be like an investment for digital payments. The govt will be investing Rs 1300 crore so that more people adopt digital payments.
