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