On December 15, 2021, Union Cabinet approved an incentive scheme of worth Rs 1,300 crore for promoting RuPay Debit Cards and low-value BHIM-UPI transactions.

Key Points

• Under the scheme, low value BHIM-UPI transactions of up to Rs 2,000 will be promoted in India.
• Under this scheme, government will incentivise the acquiring banks by paying a percentage of value of transactions (P2M) which are done through RuPay Debit cards and low-value BHIM-UPI payments modes.
• Scheme will be implemented at an estimated financial outlay of Rs 1,300 crore for one-year.
• It will facilitate acquiring banks to build a robust digital payment ecosystem as well to promote BHIM-UPI digital transactions and RuPay Debit card across all sectors and segments of population. It will further deepen digital payments in India.
• Scheme will also help the unbanked and marginalised populations in accessing digital modes of payments, outside the formal banking and financial system.