Last updated on July 3rd, 2023 at 04:05 pm
The incentive scheme for the promotion of RuPay Debit Card and low-value BHIM-UPI transactions (person to merchant) for a period of one year from April 2022 was approved by the Union Cabinet chaired by Hon’ble PM Modi.
The financial outlay for low-value BHIM-UPI transactions (P2M) in FY 2022-23 is ₹ 2,600 crore. For the current financial year FY 2022-23, acquiring banks will be provided financial incentives under the said scheme for promoting Point-of-Sale (PoS) and e-commerce transactions using RuPay Debit Cards and low-value BHIM-UPI transactions (P2M).
“The Finance Minister in his speech on the Budget for FY 2022-23 announced the Government’s intention to continue financial support for digital payments, with a focus on promoting the use of payment platforms that are affordable and user-friendly.
The government had approved an incentive scheme to give a further boost to digital transactions in compliance with the budget announcement of FY2021-22. A year-on-year growth of 59% in total digital payments transactions have been registered, rising from 5,554 crores in FY2020-21 to 8,840 crores in FY2021-22. BHIM-UPI transactions have increased 106% from 2,233 crores in FY2020-21 to 4,597 crores in FY2021-22.
The Reserve Bank of India (RBI) and various stakeholders in the digital payments systems expressed concerns about the potential adverse impact of the zero MDR regime on the growth of the digital payments ecosystem. NPCI, inter alia, urged for creating a cost-effective value proposition for the ecosystem stakeholders to incentivize BHIM-UPI and RuPay debit card transactions, increase the merchant acceptance footprint, and faster migration from cash payments to digital payments.
The Government of India is taking various initiatives to promote digital payments across the country. Digital payment transactions have witnessed tremendous growth over the past years. The Covid-19 crisis caused many businesses to switch to digital payments in order to maintain social distancing.UPI had a record 782.9 crore digital payment transactions, worth ₹ 12.82 lakh crore, in December.
Many businesses switched to digital payments in order to maintain social distancing during the Covid-19 crisis. UPI saw a record 782.9 crore digital payment transactions, valued at ₹ 12.82 lakh crore, in December.
