Union cabinet has actually authorized a scheme to incentivise digital transactionsNew Delhi: Aiming to promote digital transactions and incentivise users having Rupay debit cards and BHIM merged payments interface (UPI) system, the union cabinet on Wednesday authorized reimbursement of Rs 1,300 crore on such transactions.Elaborating about the cabinet's decision, minister for electronic devices and IT Ashwini Vaishnaw informed media individuals that the government will repay deal charges levied on digital payments made by individuals to the merchant as part of the merchant discount rate (MDR).
In the coming one year the federal government will invest around Rs 1,300 crore so that increasingly more people move towards digital payments, Mr Vaishnaw said.He likewise said that 423 crore digital transactions valued at Rs 7.56 lakh crore occurred in November, 2021 alone.Under the scheme, the obtaining banks will be incentivised by the government, by way of paying a percentage of worth of transactions (P2M) done through RuPay debit cards and low-value BHIM-UPI modes of payments, at an approximated financial cost of Rs 1,300 crore for a duration of one year, which will work from April 01, 2021.
This scheme will facilitate acquiring banks in structure robust digital payment ecosystem and promoting RuPay Debit card and BHIM-UPI digital transactions, across all sectors and sectors of the population and further deepening of digital payments in the country.It will also help in making available, digital modes of payments to unbanked and marginalised sections of population, who are not part of the official banking and financial system, official sources said.