Union Cabinet Approved a Rs. 1,300-Crore Incentive to Promote Transactions Made via UPI and RuPay Debit Cards

“In a big boost to digital payments, the union cabinet on Wednesday(December 15), approved a rs. 1,300-crore incentive to promote transactions made via UPI and RuPay Debit Cards.”

Mr. George Sam, Business Head & Co-Founder at Mindgate Solutions Pvt Ltd expressed, “India is the largest consumer of digital payments across the world. The Union Cabinet’s excellent initiative will aid in building a robust digital payments ecosystem. This move will push instruments like RuPay Debit cards and UPI payments in the country across all sectors and segments for small size payments. It will also help onboarding more merchants, increasing the number of merchants accepting digital payments. The investment will in turn encourage using digital payments and facilitate further penetration of digital transactions in the country.”

Key takeaways from the scheme –

The scheme aims to give a further boost to digital transactions in the country
The government will reimburse transaction charges levied on digital payments made by persons to the merchant as part of the merchant discount rate (MDR)
The scheme will cover reimbursement on digital transactions of up to Rs 2,000, using Rupay debit cards and BHIM-UPI
the 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

Coverage –

Portal: Business News This Week