The Union Cabinet on Wednesday approved an incentive scheme for promoting digital transactions using UPI and Rupay debit cards.
Announcing this, Electronics and IT Minister Ashwini Vaishnaw said that the government would reimburse transaction charges levied on digital payments made by persons to the merchant as part of the merchant discount rate (MDR).
The approved scheme will cover reimbursement on digital transactions of up to Rs 2,000, using Rupay debit cards and BHIM-UPI, he said.
The scheme has an estimated financial outlay of Rs 1,300 crore for a period of one year effective from April 1, 2021. "The main aim of giving financial incentives is to encourage the public to move towards digital payments," Vaishnaw said.
He also said that 423 crore digital transactions valued at Rs 7.56 lakh crore took place in November.
"Under the scheme, the acquiring banks will be incentivised by the Government, by way of paying a percentage of the value of transactions (P2M) done through RuPay Debit cards and low-value BHIM-UPI modes of payments, at an estimated financial outlay of Rs 1,300 crore for a period of one-year w.e.f. April 01, 2021," an official statement said.
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