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Centre clears ₹2,600cr scheme to promote RuPay

January 12, 2023

Centre clears ₹2,600cr scheme to promote RuPay
The Union Cabinet has also approved the 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.

The scheme has a financial outlay of ₹2,600 crore, announced Union Minister Bhupender Yadav on Wednesday. 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.

Finance Minister Nirmala Sitharaman, in her Budget speech 2022-23, had announced government’s intent to continue the financial support for digital payments announced in the previous Budget, with a focus on promoting use of payment platforms that are economical and user-friendly.

In 2021-22, the government had approved an incentive scheme in compliance with the budget announcement to boost digital transactions. As a result, the government says, total digital payments transactions have registered a year-on-year growth of 59%, from ₹5,554 crore in 2020-21 to ₹8,840 crore in 2021-22. BHIM-UPI transactions have registered a growth of 106%, rising from ₹2,233 crore in ₹4,597 crore.

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