Cabinet approves incentive schemes to promote Rupay debit cards, low value BHIM-UPI transactions.

On
Wednesday, the Union Cabinet chaired by
Prime Minister Narendra Modi, approved a rupees of 2600 crore incentive
scheme to promote RuPay Debit Cards and low-value BHIM-UPI transactions
(person-to-merchant) is for a period of one Financial Year, i.e., from April
2022-2023.
Under
this scheme, acquiring banks will be provided financial incentive, for
promoting Point-of-Sale (PoS) and e-commerce transactions using RuPay Debit
Cards and low-value BHIM-UPI transactional, an official press release stated.
Last
year, the Union Finance Minister Nirmala Sitharaman in her Budget speech had
announced the government’s intent to continue the financial support for digital
payments announced in the previous Budget, with a focus on promoting use of
payment platforms that are economical and user-friendly.
As
a result of the scheme, total digital payments transactions have registered a
year-on-year growth of 59 per cent, rising from Rs 5,554 crore in FY21 to Rs
8,840 crore in FY22. Meanwhile, UPI transactions have registered a year-on-year
growth of 106 per cent, rising from Rs 2,233 crore in FY21 to Rs 4,597 crore in
FY22.
"This
incentive scheme will facilitate building of a robust digital payment ecosystem
and promoting RuPay Debit Card and BHIM-UPI digital transactions. In-line with
the objective of ‘Sabka Saath, Sabka Vikas’, the scheme will also promote UPI
Lite and UPI 123PAY as economical and user-friendly digital payments solutions
and enable further deepening of digital payments in the country, across all
sectors and segments of the population, " the release further stated.
Vishwas
Patel, Chairman, PCI and Executive Director, Infibeam Avenues, talking about
the Union Cabinet decision said, "This will further provide momentum to
the payment service operators to improve the infrastructure at the last mile in
the deep corners of our country and, will help in creating a robust digital
payment ecosystem. The government should also ensure that the benefit is
reaching the last leg of the value chain i.e. Payment aggregators."
The
government said that the exponential expansion of digital payment transactions
over time has facilitated the operation of businesses, even small shops, and
also maintained social distance throughout the Covid-19 crisis.
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