What’s in the news?
- The Union Cabinet has approved an incentive scheme to promote RuPayDebit cards and low-value [upto Rs. 2,000) BHIM-UPI transactions (Person-to-Merchant (P2M)] in the country.
- Under the scheme, the acquiring banks will be incentivised by the Government, by way of paying percentage of 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.
- This scheme will facilitate acquiring Banks in building a robust digital payment ecosystem and promoting RuPay Debit card and BHIM-UPI digital transactions, across all sectors and segments of the population and further deepening of digital payments in the country.
- It will also help in making accessible digital modes of payments to unbanked and marginalized populations, who are outside of the formal banking and financial system.