Cabinet Decisions: The Cabinet chaired by PM Narendra Modi has approved the UPI incentive scheme for small shopkeepers. Incentives of ₹ 1500 crore will be given in the financial year 2024-25.
Cabinet Decisions: The Union Cabinet chaired by Prime Minister Narendra Modi has approved the “Incentive Scheme for promotion of BHIM-UPI transactions”. This scheme will give incentives to small shopkeepers (P2M) for taking payments through UPI. This scheme is for the financial year 2024-25. The scheme will run from April 1, 2024 to March 31, 2025. The government will spend about Rs 1,500 crore on this scheme.
Applicable to UPI transactions up to Rs 2000
This scheme passed by the cabinet will be applicable only on UPI (P2M) transactions up to Rs 2,000, which are done by small shopkeepers. Small shopkeepers will get 0.15% incentive on every transaction (on transactions up to Rs 2,000). If a customer buys goods worth Rs 1000 and pays through UPI, the shopkeeper will get an incentive of Rs 1.5. Along with this, banks will also get incentives. The government will immediately give 80% of the amount claimed by the banks.
These conditions have to be fulfilled for 20% amount
The bank will get the remaining 20% amount when the technical fault of the bank is less than 0.75%. The system uptime of the bank will be more than 99.5%. According to the government, it is easy, safe and fast payment for shopkeepers. Also, money will come directly to the bank account. UPI service will be available without any extra cost. A record of digital transactions will be created, which will make it easier to get a loan. At the same time, customers will have the facility to make payment easily, no extra charge will be levied.
Merchant discount rate has been made zero
The government aims to complete transactions worth Rs 20,000 crore in the financial year 2024-25. Help those who maintain the payment system. Expand UPI to small towns and villages. Keep the system running and reduce glitches. The government is working to promote digital payments. Earlier, the merchant discount rate on RuPay debit card and BHIM-UPI transactions was made zero. Now, this new incentive scheme will encourage shopkeepers to accept UPI payments.
