Govt. launches scheme to incentivize banks for promoting UPI, RuPay

The scheme will incentivise the acquiring banks by paying a percentage of the transactional value

January 17, 2023

For every transaction amounting to INR 2000, the acquiring bank will get a 0.4% incentive from the government

This move aims to promote digital payments by incentivising banks and building a robust digital payments ecosystem

The scheme will also promote United Payments Interface (UPI) Lite and UPI 123PAY as economical and user-friendly digital payment solutions

The incentive for the banks will only be applied to non-industry-related transactions

The Indian government has announced a scheme to incentivise banks for promoting point-of-sale (PoS) and e-commerce transactions using RuPay debit cards and low-volume payments to merchants on the United Payments Interface (UPI) platform, according to a report from the  Ministry of Electronics and Information Technology (MeiTY).

According to the report, the scheme will incentivise the acquiring banks by paying a percentage of the transactional value, when they record transactions through RuPay debit cards and low-value BHIM-UPI transactions up to INR 2,000. The acquiring bank will get a 0.4% incentive, capped at INR 100, incentives for low-volume transactions that are not done for industry-related programs. 

Additionally, the scheme will also promote UPI Lite and UPI 123PAY as economical and user-friendly digital payment solutions, according to the report. 

This move aims to promote digital payments by incentivising banks and building a robust digital payments ecosystem.


Source: MoneyControl

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