Cabinet clears Rs 2,600 crore scheme to promote RuPay debit card, low value BHIM-UPI transactions

The Modi government on Wednesday, January 11, approved the promotional incentives for Rupay debit cards and low-value transactions of BHIM UPI. The Union Cabinet met here today to approve incentives worth Rs 2,600 crore for FY 2022-23.

Union Minister Bhupender Yadav said that incentives will be given on the use of Rupay debit cards and BHIM for P2M (person to merchant) transactions. He said that the allocation of Rs 2,600 crore is aimed at growing the digital payment ecosystem further

He added that the scheme will benefit the MSME sector, unorganised sector and farmers.

Under the scheme, banks would be provided financial incentives for promoting Point of Sale (PoS) and e-commerce transactions using RuPay and UPI in the current financial year.

It would help in building a robust digital payment ecosystem. The scheme would also promote UPI Lite and UPI123PAY as economical and user-friendly digital payments.

"Cabinet approves the incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions (Person-to-Merchant)," said an official tweet.

Meanwhile, the Union Cabinet also approved the setting up of a national level multi-state cooperative export society under Multi-State Cooperative Societies (MSCS) Act, 2002.

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With PTI Inputs