Incentive Scheme for Promotion of RuPay and UPI:
Promotion of digital payments is an integral part of the Government’s strategy to clean and formalise the economy, mainstream savings into banks to energise investment, improve access to credit and provide wide-ranging benefits to the common man. Accordingly, “Incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions (P2M)” were notified first time for FY2021-22. Under the Scheme Banks and other payment system operators and app providers are incentivized for RuPay Debit Card and low-value BHIM-UPI transactions (upto ₹ 2,000) (Person to Merchant).
• For the FY 2023-24, the Scheme was notified by the Department of Financial Services (DFS) for a period of one year, w.e.f. April 01, 2023, at an estimated financial outlay of ₹ 3,500 crore.
• The scheme has been successful in furthering growth in digital payments. Since inception of the Scheme UPI transactions volume has grown from 4,597 Cr. in FY2021-22 to 13,116 Cr. in FY2023-24.