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TMI BlogGovt approves Rs 1,500 cr incentive for promotion of small-value UPI paymentsX X X X Extracts X X X X X X X X Extracts X X X X ..... Govt approves Rs 1,500 cr incentive for promotion of small-value UPI payments X X X X Extracts X X X X X X X X Extracts X X X X ..... IM-UPI transactions Person to Merchant (P2M)' for the financial year 2024-25 was approved by the Cabinet chaired by Prime Minister Narendra Modi, Information and Broadcasting Minister Ashwini Vaishnaw told reporters here. In a post on social media platform X, the Prime Minister said, "The incentive scheme on promoting low-value UPI transactions, which has been approved by the Cabinet today will e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncourage digital payments and further 'Ease of Living'''. The scheme will cover 55 per cent of the total merchant transactions, an official release said. An incentive at the rate of 0.15 per cent per transaction value will be provided for transactions up to Rs 2,000 pertaining to the category of small merchants. For all the quarters of the scheme, 80 per cent of the admitted claim amount by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 certain conditions. The incentive will enable small merchants to avail of UPI services at no additional cost. "As small merchants are price-sensitive, incentives would encourage them to accept UPI payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ," the release said. The promotion of digital payments is an integral part of the government's strategy for financial inclusion and provides wide-ranging payment options to the common man. Vaishnaw also informed that UPI services are also available in Singapore, France, UAE, Sri Lanka, Bhutan, Nepal and Mauritius. UPI - Unified Payments Interface - is an instant real-time payment system develop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by NPCI to facilitate inter-bank transactions through mobile phones. During the last financial year, incentive payouts by the government for BHIM-UPI were Rs 3,268 crore. The incentive is paid by the government to the acquiring bank (Merchant's bank) and thereafter shared among other stakeholders: Issuer Bank (Customer's Bank), Payment Service Provider Bank (facilitates onboarding of customer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on UPI app / API integrations) and App Providers (TPAPs). As per the RBI, MDR up to 0.90 per cent of transaction value is applicable across all card networks (for Debit cards). According to NPCI, MDR up to 0.30 per cent of transaction value is applicable for UPI P2M transactions. Since January 2020, to promote digital transactions, MDR was made zero for RuPay Debit Cards and BHIM-UPI transacti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons through amendments in section 10A in the Payments and Settlement Systems Act, 2007 and section 269SU of the Income-tax Act, 1961. PTI PRS NKD CS NKD BAL BAL X X X X Extracts X X X X X X X X Extracts X X X X
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