Incentive Scheme for RuPay Debit Cards and Low-Value BHIM-UPI Transactions

What is the incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions approved by the Union Cabinet?

The Union Cabinet has approved an incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions for a period of one year from April 2022.

What is the financial outlay for the incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions?

The financial outlay for the incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions for the current financial year FY 2022-23 is ? 2,600 crore.

What type of transactions will the incentive scheme promote?

The incentive scheme will promote Point-of-Sale (PoS) and e-commerce transactions using RuPay Debit Cards and low-value BHIM-UPI transactions (P2M) for the current financial year FY 2022-23.

What was the intent of the Government in relation to the promotion of digital payments in the Budget for FY2022-23?

The Government’s intent in the Budget for FY2022-23 was 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.

What was the result of the incentive scheme for digital transactions approved in FY2021-22?

As a result of the incentive scheme approved in FY2021-22, total digital payments transactions have registered a year-on-year growth of 59%, rising from 5,554 crore in FY2020-21 to 8,840 crore in FY2021-22.

What are the concerns expressed by stakeholders in digital payments and the Reserve Bank of India?

Stakeholders in digital payments systems and the Reserve Bank of India expressed concerns regarding potential adverse impact of the zero MDR regime on the growth of the digital payments ecosystem.

What did the National Payments Corporation of India request for in terms of digital payments?

The National Payments Corporation of India requested for incentivization of BHIM-UPI and RuPay Debit Card transactions to create a cost-effective value proposition for ecosystem stakeholders, increase merchant acceptance footprints and faster migration from cash payments to digital payments.

What initiatives is the Government of India taking for the promotion of digital payments?

The Government of India is taking various initiatives for promotion of digital payments across the country.

What are the objectives of the incentive scheme?

The objectives of the incentive scheme is to facilitate building of a robust digital payment ecosystem, promoting RuPay Debit Card and BHIM-UPI digital transactions, promoting 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.

What was the number of transactions and value of transactions in the month of December 2022?

In December 2022, UPI has achieved a record of 782.9 crore digital payment transactions with a value of ? 12.82 lakh crore.

Written by IAS POINT

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