Ministry of Electronics and Information Technology notifies the incentive scheme for promotion of RuPay Debit cards and low-value BHIM-UPI transactions (P2M) - (17 Dec 2021)
Media and Communication
The Union Cabinet, chaired by the Prime Minister has approved an incentive scheme to promote RuPayDebit cards and low-value [uptoRs. 2,000) BHIM-UPI transactions (Person-to-Merchant (P2M)] on in the country. Subsequent to its approval, the Ministry of Electronics and Information Technology (MeitY) notifies the scheme. This will facilitate acquiring Banks in building 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 of digital payments in the country. It will also help in making accessible digital modes of payments to unbanked and marginalized populations, who are outside of the formal banking and financial system.
Under the scheme, the acquiring banks will be incentivised by the Government, by way of paying percentage of value of transactions (P2M) done through RuPay Debit cards and low-value BHIM-UPI modes of payments, at an estimated financial outlay of Rs.1,300 crore for a period of one year w.e.f. April 01, 2021. Reimbursement of the claims will be done on quarterly basis. On successful submission of the claims, 95% of the claimed amount will be reimbursed to the Banks after each quarter. The remaining 5% of the claimed amount of each quarter will be released at the end of last quarter of the scheme. MeitY will review the growth of RuPay Debit card (volume) and BHIM-UPI (volume) transactions of each bank at the end of last quarter.
The Scheme is applicable to the Banks having operations in India and transactions done in India. The operational guideline for implementation of the scheme will be issued to the acquiring banks by MeitY in consultation with NPCI. The Government is taking various initiatives to promote digital payments. Over past few years, digital payment transactions have witnessed tremendous growth across the country with the number of transactions growing from 2,071 crore in FY 2017-18 to 5,554 crore in FY 2020-21. In the present Covid pandemic, digital payments enable safety for citizens through contact-less modes of payments.
Tags : DIGITAL TRANSACTION PROMOTION SCHEME