Cabinet Approves Rs 1500 Crore Incentive Scheme For Low Value BHIM-UPI transactions
New Delhi: With an estimated expenditure of Rs 1,500 crore, the incentive scheme for low-value BHIM-UPI transactions was approved by the Union Cabinet on Wednesday under the leadership of Prime Minister Narendra Modi.
Through the domestic BHIM-UPI platform, the goal is to reach the 20,000 crore total transaction volume objective in FY 2024–2025.
The Cabinet stated that the incentive program for promoting low-value BHIM-UPI transactions (person to merchant) “will be implemented at an estimated outlay of 1,500 crore, from 01.04.2024 to 31.03.2025”.
It further stated that the scheme only covers UPI (P2M) transactions up to Rs 2,000 for small merchants. For transactions up to Rs. 2,000 that fall within the category of small merchants, an incentive of 0.15 percent per transaction value would be offered.
“For all the quarters of the scheme, 80 per cent of the admitted claim amount by the acquiring banks will be disbursed without any conditions,” according to a Cabinet note.
According to the Cabinet, the remaining 20% of the admitted claim amount will only be reimbursed if the following requirements are met: 0% of the admitted claim will only be reimbursed if the acquiring bank’s technical decline is less than 0.75 percent, and the remaining 10% of the admitted claim will only be reimbursed if the acquiring bank’s system uptime is greater than 99.5%.
The change will guarantee a quick, easy, and safe financial flow, and regular people will get access to seamless payment options free of fees. Additionally, small shops will be able to use UPI services for free thanks to this.
The 20 per cent incentive is contingent upon banks maintaining high system uptime and low technical decline. This will ensure round-the-clock availability of payment services to citizens.
According to the RBI, merchant discount rates (MDR) of up to 0.90 percent of transaction value are valid across all card networks (for debit cards). According to the NPCI, MDR up to 0.30 percent of transaction value is applicable to UPI P2M transactions. To boost digital transactions, MDR for RuPay Debit Cards and BHIM-UPI transactions has been set to zero since January 2020.
You May Like
Trending Searches Today |
Dharmendra Pradhan launches PMeVIDYA DTH 24×7 Channel for Indian Sign Language
Pakistan Jaffar Express Train Hijacked, Rebel Group Claims 100 Hostages
- Odisha Assembly Commotion, Congress MLAs Yelled Slogans
- Dhenkanal: Road Accident Takes Lives of Three Workmen
