What’s in the news?

• The Union Cabinet has approved the ‘Incentive Scheme for promotion of low-value BHIM-UPI transactions Person to Merchant (P2M)’ to encourage digital payments among small merchants.
• The scheme ensures zero Merchant Discount Rate (MDR) on UPI transactions and offers a 0.15% incentive for transactions up to ₹2,000 made to small merchants.
  • MDR is a fee that merchants and other businesses must pay to a payment processing company on debit or credit card transactions. 
  • The MDR typically comes in the form of a percentage of the transaction amount.
• The scheme aims to expand UPI infrastructure across rural and semi-urban areas.

https://pib.gov.in/PressReleasePage.aspx?PRID=2114335#:~:text=The%20Union%20Cabinet%20has%20approved,2%2C000%20made%20to%20small%20merchants.