INSUBCONTINENT EXCLUSIVE:
Union cabinet has actually authorized a scheme to incentivise digital transactionsNew Delhi: Aiming to promote digital transactions and
incentivise users having Rupay debit cards and BHIM merged payments interface (UPI) system, the union cabinet on Wednesday authorized
reimbursement of Rs 1,300 crore on such transactions.Elaborating about the cabinet's decision, minister for electronic devices and IT
Ashwini Vaishnaw informed media individuals that the government will repay deal charges levied on digital payments made by individuals to
the merchant as part of the merchant discount rate (MDR)
In the coming one year the federal government will invest around Rs 1,300 crore so that increasingly more people move towards digital
payments, Mr Vaishnaw said.He likewise said that 423 crore digital transactions valued at Rs 7.56 lakh crore occurred in November, 2021
alone.Under the scheme, the obtaining banks will be incentivised by the government, by way of paying a percentage of worth of transactions
(P2M) done through RuPay debit cards and low-value BHIM-UPI modes of payments, at an approximated financial cost of Rs 1,300 crore for a
duration of one year, which will work from April 01, 2021
This scheme will facilitate acquiring banks in structure robust digital payment ecosystem and promoting RuPay Debit card and BHIM-UPI
digital transactions, across all sectors and sectors of the population and further deepening of digital payments in the country.It will also
help in making available, digital modes of payments to unbanked and marginalised sections of population, who are not part of the official
banking and financial system, official sources said.
