Union Cabinet approves incentive scheme for promotion of low-value UPI transactions among small merchants
Top News
6 days, 2 hours ago

Union Cabinet approves incentive scheme for promotion of low-value UPI transactions among small merchants

Op India  

The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the ‘Incentive Scheme for promotion of low-value BHIM-UPI transactions Person to Merchant ’ for the financial year 2024-25. Incentives at the rate of 0.15 per cent per transaction value will be provided for transactions upto Rs 2,000 pertaining to the category of small merchants. For all quarters of the scheme, 80 per cent of the admitted claim amount by the acquiring banks will be disbursed without any conditions. The reimbursement of the remaining 20 per cent of the admitted claim amount for each quarter will be contingent upon the fulfilment of the following conditions: 10 per cent of the admitted claim will be provided only when the technical decline of the acquiring bank will be less than 0.75 per cent; and the remaining 10 per cent of the admitted claim will be provided only when the system uptime of the acquiring bank will be greater than 99.5 per cent.

Bank Cent Scheme Upi Small Merchants  cabinet  upi  cent  transactions  incentive  claim  union  promotion  admitted  scheme  merchants  bank  acquiring  lowvalue  small

History of this topic

Modi govt approves UPI incentive scheme: What is it and how will it help small merchants?
5 days, 14 hours ago

Modi govt approves UPI incentive scheme: What is it and how will it help small merchants?

India TV News  

Modi govt approves UPI incentive scheme: What is it and how will it help small merchants? UPI incentive scheme: The scheme aims to promote low-value BHIM-UPI transactions will be implemented at an estimated cost of Rs 1,500 crore. UPI incentive scheme: In a move aimed at empowering small merchants and easing digital payments for everyday consumers, the central government has …

Cabinet approves ₹1,500 crore to incentivise low-value UPI transactions
Trending News
6 days, 2 hours ago

Cabinet approves ₹1,500 crore to incentivise low-value UPI transactions

The Hindu  

The Union Cabinet on Wednesday approved an incentives scheme worth approximately ₹1,500 crore to promote UPI transactions below ₹2,000 for 2024-25, an official statement said. "The Union Cabinet chaired by Prime Minister Narendra Modi today approved the 'Incentive Scheme for promotion of low-value BHIM-UPI transactions Person to Merchant ’ for the financial year 2024-25," the statement said. The incentive scheme …

Government to continue footing the bill for UPI payments under Rs 2,000
Top News
6 days, 14 hours ago

Government to continue footing the bill for UPI payments under Rs 2,000

India Today  

The Union Cabinet has approved the extension of the Rs 1,500 crore incentive scheme for small-value UPI transactions. "The Union Cabinet chaired by the Prime Minister Shri Narendra Modi today approved the ‘Incentive Scheme for promotion of low-value BHIM-UPI transactions Person to Merchant ’ for the financial year 2024-25 in the following manner: i. The government had earlier said that …

Govt Mulls Bringing Back Merchant Fees On UPI And RuPay Payments: Report
2 weeks ago

Govt Mulls Bringing Back Merchant Fees On UPI And RuPay Payments: Report

ABP News  

The government is reportedly considering a proposal to reintroduce merchant charges on Unified Payments Interface -based transactions and RuPay-powered debit card payments, according to The Economic Times report citing two senior bankers familiar with the matter. Different For Different Traders The government may introduce a tiered pricing system for UPI transactions, where larger merchants would incur higher charges, while smaller …

RBI allows UPI access for prepaid payment instruments via third party applications: Here’s what it means
2 months, 3 weeks ago

RBI allows UPI access for prepaid payment instruments via third party applications: Here’s what it means

Live Mint  

The Reserve Bank of India on Friday, December 27, allowed prepaid payment instrument holders to make and receive unified payments interface payments through third-party mobile applications. The central bank said in a circular today that it has decided to enable UPI payments from/to full-KYC prepaid payment instruments through third-party UPI apps. “A PPI issuer shall enable holders of only its …

‘Majority of people will stop using UPI if…’, survey reveals
1 year ago

‘Majority of people will stop using UPI if…’, survey reveals

Live Mint  

A survey has revealed that a majority of the citizens will stop using the Unified Payments Interface if a transaction fee is levied on it. 73% of those surveyed indicated that they will stop using UPI if a transaction fee is introduced while 23% of the respondents said that they are willing to bear a transaction fee on payment. "37% …

PPI Wallet transactions of over ₹2,000 on UPI to attract 1.1% charge from April 1, 2023
1 year, 11 months ago

PPI Wallet transactions of over ₹2,000 on UPI to attract 1.1% charge from April 1, 2023

The Hindu  

Starting April 1, merchant transactions exceeding ₹2,000 in value done using Prepaid Payment Instruments on UPI will attract an interchange charge of 1.1%. However, “the new interchange charges are only applicable for the PPI merchant transactions and there is no charge to customers,” the National Payments Corporation of India, which governs UPI,, said in a statement on Wednesday. Rajsri Rengan, …

GST not payable on govt incentive to banks for promoting RuPay, BHIM-UPI: Centre
2 years, 2 months ago

GST not payable on govt incentive to banks for promoting RuPay, BHIM-UPI: Centre

Hindustan Times  

Incentives paid by the government to banks for promoting RuPay debit cards and low-value BHIM-UPI transactions will not attract GST, the Finance Ministry said. Last week the Cabinet cleared a ₹2,600-crore incentive scheme for banks to promote RuPay debit cards and low-value BHIM-UPI transactions in the current fiscal. “As recommended by the Council, it is hereby clarified that incentives paid …

Big boost to Digital India! Govt approves Rs 2,600cr incentive scheme for RuPay, BHIM-UPI transactions
2 years, 2 months ago

Big boost to Digital India! Govt approves Rs 2,600cr incentive scheme for RuPay, BHIM-UPI transactions

India TV News  

In a big boost to Digital India initiative, the Centre has approved has approved an incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions for a period of one year from April 2022. The approved incentive scheme will focus on promoting Point-of-Sale and e-commerce transactions using RuPay Debit Cards and low-value BHIM-UPI transactions for the current financial …

Centre will spend Rs 2,600cr on RuPay
2 years, 2 months ago

Centre will spend Rs 2,600cr on RuPay

Deccan Chronicle  

NEW DELHI: The Union Cabinet on Wednesday approved a Rs 2,600-crore scheme for promoting ‘RuPay’ debit cards and low-value ‘BHIM-UPI’ transactions. Sharing about the decision, Union minister Bhupender Yadav said that the Union Cabinet has approved the incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions for a period of one year from April 2022. Under the …

Centre earmarks ₹2,600 crore as incentive for banks to promote digital payments
2 years, 2 months ago

Centre earmarks ₹2,600 crore as incentive for banks to promote digital payments

The Hindu  

The Union Cabinet approved an outlay of ₹2,600 crore to promote payments using RuPay cards and the Unified Payments Interface, Union Minister Bhupendra Yadav announced on Wednesday. Banks will be provided this incentive money to promote such digital payments, the Cabinet said in a press release. “The scheme will also promote UPI Lite and UPI 123PAY as economical and user-friendly …

UPI payments to be charged? Finance ministry responds
2 years, 7 months ago

UPI payments to be charged? Finance ministry responds

India Today  

The central government has clarified its position on reports claiming that it may levy additional charges on UPI payments. The tweet also said that the cost of recovery has to be met through other means, and the government has provided financial support for the digital payments ecosystem in the country. Although the paper did not only relate to UPI transactions, …

RBI allows credit cards to be linked with UPI platform
2 years, 9 months ago

RBI allows credit cards to be linked with UPI platform

India TV News  

Highlights RBI today allowed credit cards to be linked with the unified payments interface It will enable more people to make payments using the popular platform At present, UPI facilitates transactions by linking savings or current accounts through debit cards RBI news updates : The Reserve Bank of India on Wednesday allowed credit cards to be linked with the unified …

Modi cabinet clears Rs 1,300 crore incentive scheme to promote digital payments
3 years, 3 months ago

Modi cabinet clears Rs 1,300 crore incentive scheme to promote digital payments

India TV News  

Highlights Cabinet on Wednesday approved Rs 1,300-crore incentive scheme to promote digital transactions Approved scheme will cover reimbursement on digital transactions of up to Rs 2,000 The scheme was formulated in compliance with the Budget announcements The Union Cabinet on Wednesday approved a Rs 1,300-crore incentive scheme to promote digital transactions using UPI and Rupay debit cards, Electronics and IT …

President praises govt’s digital payments initiatives
6 years, 1 month ago

President praises govt’s digital payments initiatives

Live Mint  

New Delhi: In the last four-and-a-half years the government has worked extensively to ramp up the digital banking and payments infrastructure of the country, said President Ram Nath Kovind on Thursday in his address to the joint sitting of two Houses of Parliament. “Jan Dhan Yojana is playing an important role in facilitating cost-effective digital transactions in the country through …

UPI: India’s biggest and boldest payments interface bet yet
8 years, 7 months ago

UPI: India’s biggest and boldest payments interface bet yet

Live Mint  

Unified Payments Interface is the new boy in the payments market and has the makings of a blockbuster even before its launch. The biggest draw for UPI is its power to make payments seamless and instantaneous by requiring the payee to only remember a virtual payment address, much like sending an email. UPI is being launched by National Payments Corp. …

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