MoF notifies Extension of Incentive scheme for promotion of RuPay Debit Cards and BHIM-UPI Transactions [Read Notification]
The government has extended its incentive scheme to promote digital payments using RuPay Debit Cards and BHIM-UPI transactions for the financial year 2023-24
MoF – Ministry of Finance – MoF notification – RuPay Debit Cards – BHIM UPI Transactions – taxscan
MoF – Ministry of Finance – MoF notification – RuPay Debit Cards – BHIM UPI Transactions – taxscan
The Ministry of Finance has announced the extension of its incentive scheme to further encourage digital payments across the country.
This scheme incentivizes banks and other payment system operators to promote RuPay Debit Card transactions and low-value BHIM-UPI ( Person-to-Merchant ) transactions up to Rs. 2,000.
The Government approved the proposal to continue the “Incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions ( Person to Merchant )”, for a period of one year and at a financial outlay of ₹ 3,500 Crore. The scheme was initially applicable from April 1, 2023, to March 31, 2024, with a financial outlay of Rs. 3,500 crore. This includes Rs. 500 crore allocated for RuPay Debit Card transactions and Rs. 3,000 crore for BHIM-UPI transactions.
The Scheme incentivizes Banks and other payment system operators to promote digital payments using RuPay Debit Cards and BHIM-UPI.
Transaction Limit: BHIM-UPI transactions up to Rs. 2,000 ( Person-to-Merchant ).
Financial Outlay: Rs. 3,500 crore ( Rs. 500 crore for RuPay Debit Cards and Rs. 3,000 crore for BHIM-UPI ).
Scheme Duration: April 1, 2023, to March 31, 2024.
This initiative is expected to further accelerate the adoption of digital payments in India, contributing to the government's vision of a cashless economy.
The incentive scheme focuses on promoting indigenous digital payment modes like BHIM-UPI and RuPay Debit Cards. The scheme encourages transactions in various sectors like education, railways, agriculture, and healthcare. Banks can earn higher incentives by enabling features like BHIM-UPI Lite and UPI Conversational Payments.
It was noted that, DFS, in consultation with NPCI, will issue operational guidelines for implementation of the scheme, including the incentive sharing mechanism.
Notably, the Scheme shall be applicable to the Banks having operations in India and transactions done in India.
To Read the full text of the Notification CLICK HERE
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