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What is the news?
Cabinet has approved an incentive scheme for promotion of Rupay debit cards and low value BHIM-UPI transactions (Person to Merchant) of up to 2000 rupees in the country.
This scheme currently has a validity of one year.
What is the scheme?
Under the scheme, the government will reimburse transaction charges levied on digital payments made by persons to the merchant (P2M) as part of the merchant discount rate (MDR).
The approved scheme will cover reimbursement on digital transactions of up to ₹2,000, using Rupay debit cards and BHIM-UPI.
Benefits of scheme
1) It will facilitate banks in building robust digital payment ecosystem and promoting RuPay Debit card and BHIM-UPI digital transactions. This will further promote digital payments in the country.
2) The unbanked and marginalized population which is currently outside the formal banking and financial system will be able to access digital payments.
3) It will lead to research and development and innovation in fintech space.
Source– This post is based on the article “Cabinet approves an incentive scheme for promotion of Rupay debit cards and low value BHIM-UPI transactions (P2M)” published in PIB on 15th Dec 2021.
