Cabinet Approves 2,600 Crore Boost for Low-Value Rupay Debit Card and UPI Payments - Indiaztech.com

Cabinet Approves 2,600 Crore Boost for Low-Value Rupay Debit Card and UPI Payments

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Cabinet Approves 2,600 Crore Boost for Low-Value Rupay Debit Card and UPI Payments

The government stated that the scheme aims to construct a strong digital payment infrastructure, as well as promote cost-effective and user-friendly payment options such as UPI Lite and UPI 123Pay.

The Indian government has approved a Rs 2,600 crore-incentive scheme to support low-value transactions made through the Unified Payments Interface (UPI) and Rupay debit cards. The scheme, which will be in effect for the 2022-23 financial year, will provide incentives to acquiring banks who promote point-of-sale and e-commerce transactions. The ultimate goal of the initiative is to strengthen the digital payment ecosystem and make UPI Lite and UPI 123Pay more accessible to users.

Looking to increase adoption of digital payments and reduce dependency on cash, the Indian government has announced an incentive scheme for BHIM-UPI and RuPay Debit Card transactions. The National Payments Corporation of India (NPCI) had requested the incentives in order to create cost-effective options for all participants in the ecosystem, expand merchant acceptance and speed up migration to digital payments. The government’s plan will help NPCI to achieve its goal by promoting BHIM-UPI and RuPay Debit Card transactions among people and merchants.

India is seeing a steady rise in digital payments, with the UPI reporting a record 782.9 crore digital transactions valued at Rs 12.82 lakh crore in December 2022. The government reported that overall digital payments saw a year-over-year growth of 59%, rising from 5,554 crore in FY2020-21 to 8,840 crore in FY2021-22. Additionally, BHIM-UPI transactions experienced a year-over-year growth of 106%, increasing from 2,233 crore in FY2020-21 to 4,597 crore in FY2021-22.

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