Centre allots Rs 1300 cr to promote payments through UPI, RuPaytext_fields
New Delhi: In a view to promoting digital payment transactions using UPI and Rupay debit cards, the union government has approved a Rs 1,300-crore incentive scheme.
Electronics and IT Minister Ashwini Vaishnaw said said that the government will reimburse transaction charges levied on digital payments made by persons to the merchant as part of the merchant discount rate (MDR).
"In the coming one year...the government will invest around Rs 1,300 crore so that more and more people move towards digital payments," Vaishnaw said. He also said that 423 crore digital transactions valued at Rs 7.56 lakh crore took place in November. The approved scheme will cover reimbursement on digital transactions of up to Rs 2,000, using Rupay debit cards and BHIM-UPI.
"Under the scheme, the acquiring banks will be incentivised by the government, by way of paying a percentage of the value of transactions (P2M or person to merchant) done through RuPay Debit cards and low-value BHIM-UPI modes of payments, at an estimated financial outlay of Rs 1,300 crore for a period of one-year w.e.f. April 01, 2021," an official statement said.
This scheme will facilitate acquiring banks in building a robust digital payment ecosystem and promoting Rupay debit card and BHIM-UPI digital transactions across all sectors and segments of the population and further deepening digital payments in the country, the statement added.
The scheme was formulated in compliance with the Budget announcements (FY 2021-22) by the government to give a further boost to digital transactions in the country.