The Union Cabinet on January 11 gave its nod to a Rs 2,600 crore-incentive scheme, which is aimed at boosting low-value transactions done through BHIM-Unified Payments Interface (UPI) and promote Rupay debit cards.
The scheme, with a total financial outlay of Rs 2,600 crore, has been approved for the financial year 2022-23, the government said in a press briefing.
The acquiring banks, under the scheme, "will be provided financial incentive for promoting point-of-sale (PoS) and e-commerce transactions for current FY2022-23", a release issued by the government stated.
The benefits of the scheme includes the "building of a robust digital payment ecosystem", and to "promote UPI Lite and UPI 123Pay as economical and user-friendly digital payment options", it added.Also Read | UPI clocks 19.65 billion transactions at Rs 32.5 trillion in Q3 2022: Report
— Satyendra Prakash (@DG_PIB) January 11, 2023
According to the government, the National Payments Corporation of India (NPCI) -- the nodal body for digital payments and settlement systems - had requested, "for incentivisation of BHIM-UPI and RuPay Debit Card transactions to create a cost-effective value proposition for ecosystem stakeholders, increase merchant acceptance footprints and faster migration from cash payments to digital payments".
The scheme is also in line with Finance Minister Nirmala Sitharaman's announcement in het last Budget speech, reiterating the government's intent to "continue the financial support for digital payments", the release added.
Digital payment transactions continue to gain momentum in the country, with the UPI achieving a record of 782.9 crore digital payment transactions with a value of Rs 12.82 lakh crore in the month of December 2022, the government pointed out.Total digital payments transactions have registered a year-on-year growth of 59 percent, rising from 5,554 crore in FY2020-21 to 8,840 crore in FY2021-22, it further said, adding that BHIM-UPI transactions have registered a year-on-year growth of 106 percent, rising from 2,233 crore in FY2020-21 to 4,597 crore in FY2021-22.