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New Delhi: The Union Cabinet on Wednesday approved a Rs 1,300-crore incentive scheme to promote digital transactions using UPI and RuPay debit cards, Electronics and IT Minister Ashwini Vaishnav said.
The minister said the government would reimburse the transaction charges levied on digital payments made by individuals to merchants as part of the Merchant Discount Rate (MDR).
Vaishnav said, “The government will invest around Rs 1,300 crore in the coming one year so that more and more people move towards digital payments.
He also said that there were 423 crore digital transactions worth Rs 7.56 lakh crore in November.
The approved scheme will include reimbursement on digital transactions up to Rs 2,000 using RuPay debit cards and BHIM-UPI.
“Under this scheme, the government-acquired banks will be incentivized by paying a percentage of the value of (P2M) transactions done through RuPay debit cards and low-value BHIM-UPI payments on the projected financial outlay as of April 1. 1,300 crore for a period of one year from 2021 onwards,” said an official statement.
The scheme will facilitate creation of a robust digital payments ecosystem and enabling banks to promote RuPay Debit Card and BHIM-UPI digital transactions across all segments and segments of the population and to further deepen digital payments in the country.
The scheme was formulated in compliance with the budget announcements (FY2021-22) by the government to further promote digital transactions in the country.
Read also: National Payments Corp Global Arm CEO says UPI payments grow 200% annually in last 5 years
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