Cabinet okays ₹2,600 cr incentive to push RuPay debit cards, BHIM-UPI transactions

/ 2 min read

The incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions (P2M) in the financial year 2022-23 has a financial outlay of ₹2,600 crore.

Banks will be provided financial incentive, for promoting point-of-sale (PoS) and e-commerce transactions using RuPay debit cards.
Banks will be provided financial incentive, for promoting point-of-sale (PoS) and e-commerce transactions using RuPay debit cards. | Credits: Sanjay Rawat

The Union Cabinet led by Prime Minister Narendra Modi has approved an incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions (person-to-merchant) for a period of one year from April 2022.

ADVERTISEMENT

The approved incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions (P2M) in the financial year 2022-23 has a financial outlay of ₹2,600 crore.

Under the scheme, acquiring banks will be provided financial incentive, for promoting point-of-sale (PoS) and e-commerce transactions using RuPay debit cards and low-value BHIM-UPI transactions (P2M) for the current financial year 2022-23.

In her Budget speech last year, Union Finance Minister Nirmala Sitharaman had said that the government will continue the financial support for digital payments, with a focus on promoting use of payment platforms that are economical and user-friendly.

In FY22, the government had approved an incentive scheme in compliance with the budget announcement of FY22 to give a further boost to digital transactions. As a result, total digital payments transactions registered a year-on-year growth of 59%, rising from ₹5,554 crore in FY21 to ₹8,840 crore in FY22. BHIM-UPI transactions registered a year-on-year growth of 106%, rising from ₹2,233 crore in FY21 to ₹4,597 crore in FY22.

Recommended Stories

UPI operator National Payments Corporation of India (NPCI) recently extended the deadline for third-party apps to comply with its 30% market share cap guidelines by two years. NPCI said the new deadline would be December 31, 2024, from January 1, 2023, earlier. Walmart-owned PhonePe commands 40% market share of the Unified Payments Interface (UPI) network.

Transactions on the Unified Payments Interface (UPI) platform hit a record high of 782 crore in December 2022. The total value of UPI transactions also hit an all-time high of ₹12.8 lakh crore.

ADVERTISEMENT

Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.

Most Powerful Women In Business 2025
View Full List >