The Union Cabinet, led by Prime Minister Narendra Modi, authorised an incentive scheme on Wednesday to promote RuPay Debit cards and low-value (up to 2,000) BHIM-UPI transactions (Person-to-Merchant (P2M)] BHIM-UPI transactions across the country. The government will incentivize acquiring banks under the programme by paying a proportion of the amount of transactions (P2M) made using RuPay Debit cards and low-value BHIM-UPI means of payments, with an expected financial investment of Rs 1,300 crore for a one-year period beginning April 1, 2021. It would also assist in making digital means of payment available to unbanked and underprivileged people who are not part of the official banking and financial system.
“This scheme will assist acquiring banks in developing a robust digital payment ecosystem and promoting RuPay Debit card and BHIM-UPI digital transactions across all sectors and segments of the population, as well as further deepening digital payments in the country,” the Cabinet said in a statement.
The programme will encourage more fintech research and development, as well as assist the government in deepening digital payments in various sections of the country. It should be mentioned that the plan was created in accordance with the government’s Budget statements (FY 2021-22) to encourage digital transactions in the country.
India is now one of the world’s most efficient payment markets. It is well known that the government has been attempting to increase digitalization in the country since the emergence of the Coronavirus epidemic.
What exactly is RuPay?
RuPay is a product of the National Payments Corporation of India (NPCI), which is responsible for retail payments in India. It is India’s first global Card payment network, with widespread acceptance at ATMs, POS terminals, and e-commerce websites around the country. It’s a highly secure network with anti-phishing protection. RuPay also satisfies the RBI’s goal of establishing a “less cash” economy.
What exactly is BHIM?
Bharat Interface for Money (BHIM) is a payment app that uses the Unified Payments Interface to make simple, easy, and quick transactions (UPI). You can make direct bank payments to anyone on UPI by scanning their QR code with the BHIM app or using their UPI ID. You can also use the app to request money from a UPI ID.