Explorer

Cabinet Okays Rs 1,300-Crore Incentive Scheme To Promote RuPay Debit Card, BHIM-UPI Transactions

Union Minister Ashwini Vaishnaw said 423 crore digital transactions valued at Rs 7.56 lakh crore took place in November

New Delhi: The Union Cabinet on Wednesday approved a Rs 1,300-crore plan to promote domestic RuPay debit cards and low-value digital transactions to boost their use in marginalised populations, a move that could challenge the clout of rivals like Visa and Mastercard in the country.

The Centre approved a scheme to provide incentives of small amounts for transactions done through debit cards such as RuPay 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) done through RuPay Debit cards and low-value BHIM-UPI modes of payments, at an estimated financial outlay of ₹1,300 crore for a period of one-year w.e.f. April 01, 2021," an official statement said.

After the Cabinet meeting, Electronics and IT Minister Ashwini Vaishnaw told reporters 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).

He 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.

The scheme has been formulated in compliance with the Budget announcements (FY21-22) by the central government to further boost digital transactions in the country.

This scheme will facilitate acquiring banks to build a robust digital payment ecosystem and promote RuPay Debit card and BHIM-UPI digital transactions across all sectors and segments of the population, and further deepening digital payments in the country.

It will also help make accessible digital modes of payments to unbanked and marginalised populations outside of the formal banking and financial system.

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

India Summons Bangladesh Acting High Commissioner Over Border Issue After Dhaka Summoned Indian Envoy
India Summons Bangladesh Acting High Commissioner Over Border Issue After Dhaka Summoned Indian Envoy
India Reports Fresh Case Of HMPV. Know Which States Have Positive Cases
India Reports Fresh Case Of HMPV. Know Which States Have Positive Cases
PM Modi Inaugurates Z-Morh Tunnel For All-Year Access To J&K's Sonamarg
PM Modi Inaugurates Z-Morh Tunnel For All-Year Access To J&K's Sonamarg
Trust Between India & China Needs To Have New Understanding, Says Army Chief 
Trust Between India & China Needs To Have New Understanding, Says Army Chief 
Advertisement
ABP Premium

Videos

Breaking News: PM Modi to Inaugrate Z-morh tunnel , Boosting Kashmir 's Devlopment |ABPBreaking News: Delhi Police Issues Notice to AAP MLA Mahendra Goyal |ABP NEWSMahakumbh 2025 : CM Yogi extends his best wishes for the Mahakumbh | ABP NewsMahakumbh 2025: Devotees chants PM Modi and CM Yogi's  Names While Taking a Dip in the Ganga  |abp

Photo Gallery

Embed widget