Banks will get incentives on purchase of Rupay card, Bhim UPI, rules notified

The government has implemented a Rs 2,600-crore bank incentive scheme to promote shop-mounted POS machines and e-commerce transactions through RuPay debit cards and BHIM UPI platform. Information about this incentive scheme has been given in a notification released on January 14 on the website of the Ministry of Electronics and Information Technology. This is a part of the announcement made in the budget for the financial year 2022-23 regarding the promotion of digital transactions. Under this scheme, it has been announced to give incentive amount to banks from the date of April 1, 2022.

In this, some percentage of transactions done through RuPay Debit Card and BHIM UPI transactions up to Rs 2,000 will be given as incentive to banks. The notification states that this incentive scheme will encourage banks to create a robust digital payments ecosystem, while promoting the use of Rupay cards and BHIM UPI as affordable digital payment platforms. The scheme will also promote UPI Lite and UPI 123pay.

The concerned bank will get an incentive of 0.4 percent (maximum Rs. 100) on the payment made through RuPay card on PoS machines installed near the shopkeepers and on e-commerce platforms. Industry sectors will get 0.15 percent (maximum six rupees) on the payment. And for payments up to Rs 2,000 to the merchant through BHIM UPI, the bank will be given 0.25 per cent of the transaction amount. At the same time, 0.15 percent will be given for the payment made for insurance, mutual funds, education and railways. The duration of this incentive scheme has been kept for one year from April, 2022. The financial allocation for this has been capped at Rs 2,600 crore.

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