Union govt to promote digital payments via UPI, RuPay with Rs 1300 cr incentive scheme

The Union Cupboard on Wednesday, December 15, accepted a Rs 1,300-crore incentive scheme to promote digital transactions using UPI and Rupay debit enjoying playing cards, Electronics and IT Minister Ashwini Vaishnaw said. The Minister said that the federal authorities will reimburse transaction prices levied on digital funds made by people to the service supplier as part of the service supplier low price value (MDR). “Within the coming one 12 months…the federal government will make investments round Rs 1,300 crore in order that an increasing number of individuals transfer in direction of digital funds,” Vaishnaw said. He moreover said that 423 crore digital transactions valued at Rs 7.56 lakh crore occurred in November. The accepted scheme will cowl reimbursement on digital transactions of as a lot as Rs 2,000, using Rupay debit enjoying playing cards and BHIM-UPI.“Beneath the scheme, the buying banks will probably be incentivised by the federal government, by means of paying a share of the worth of transactions (P2M or particular person to service provider) achieved by way of RuPay Debit playing cards and low-value BHIM-UPI modes of funds, at an estimated monetary outlay of Rs 1,300 crore for a interval of one-year w.e.f. April 01, 2021,” an official assertion said.This scheme will facilitate shopping for banks in setting up a robust digital price ecosystem and promoting Rupay debit card and BHIM-UPI digital transactions all through all sectors and segments of the inhabitants and extra deepening digital funds inside the nation, it added.The scheme was formulated in compliance with the Finances bulletins (FY 2021-22) by the federal authorities to current a further improve to digital transactions inside the nation.