Rs 1,300 cr cashback on UPI, Rupay transactions; govt OKs reimbursement of merchant charges

The Union Cabinet connected Wednesday approved a Rs 1,300-crore inducement strategy to beforehand integer transactions utilizing UPI and Rupay debit cards, Electronics and IT Minister Ashwini Vaishnaw said.

The curate said that the authorities volition reimburse transaction charges levied connected integer payments made by persons to the merchant arsenic portion of the merchant discount complaint (MDR).

“In the coming 1 year…the authorities volition put astir Rs 1,300 crore truthful that much and much radical determination towards integer payments,” Vaishnaw said.
He besides said that 423 crore integer transactions valued astatine Rs 7.56 lakh crore took spot successful November.

The approved strategy volition screen reimbursement connected integer transactions of up to Rs 2,000, utilizing Rupay debit cards and BHIM-UPI.

“Under the scheme, the acquiring banks volition beryllium incentivised by the Government, by mode of paying a percent of the worth of transactions (P2M) done done RuPay Debit cards and low-value BHIM-UPI modes of payments, astatine an estimated fiscal outlay of Rs 1,300 crore for a play of one-year w.e.f. April 01, 2021,” an authoritative connection said.

This strategy volition facilitate acquiring banks successful gathering a robust integer outgo ecosystem and promoting Rupay debit paper and BHIM-UPI integer transactions crossed each sectors and segments of the colonisation and further deepening integer payments successful the country, it added.

The strategy was formulated successful compliance with the Budget announcements (FY2021-22) by the authorities to springiness a further boost to integer transactions successful the country.