People will get incentives on the use of BHIM-UPI and Rupay cards, the government has approved 2600 crores
Under the incentive of Rs 2600 crore, MSMEs, farmers, laborers, and industry will get some exemption on payments made under BHIM UPI.
The Union Cabinet has approved a scheme of Rs 2,600 crore to promote low-amount transactions on RuPay Debit Card and Bhim UPI. This will give a boost to digital payments in the country and under this scheme, in the current financial year i.e. 2022-23, using Rupay and UPI, Point of Sale (PoS) i.e. payment machines installed at shops and Rupay debit cards will be used to pay e-payments. A financial incentive will be given to promote commerce transactions and low-value BHIM-UPI transactions. These incentives will be available on P2M (Person to Merchant) basis.
Explaining the decision taken in the cabinet meeting, cabinet minister Bhupendra Yadav said that under the incentive of Rs 2600 crore announced by the central government, payments to be made to MSMEs, farmers, laborers, and industry under BHIM UPI But there will be some discount. The government has taken these steps to make digital payments easy and accessible.
This will create a digital payment ecosystem
The government says that it is taking several initiatives to promote digital payments across the country. During COVID-19, digital payments facilitated the functioning of businesses including small traders, and helped in maintaining social distancing.
This incentive scheme will facilitate the creation of a digital payment ecosystem and promote RuPay Debit Card and BHIM-UPI digital transactions. The government said the scheme will promote UPI Lite and UPI 123PAY as affordable and user-friendly digital payment solutions and enable access to digital payments across all regions and segments of the population.