The Union Cabinet has approved the promotional incentives for Rupay debit cards and low-value transaction of BHIM (UPI), as per sources.
Approximately Rs 2,600 crore incentives have been approved for FY2022-23 which will be given on the use of Rupay debit cards and BHIM UPI through P2M (Person to Merchant) basis, added sources.
The Union Cabinet has also approved the setting up of three co-operative societies under the new Act.
An incentive programme to promote RuPayDebit cards and low-value (up to Rs 2,000) BHIM-UPI transactions (Person-to-Merchant (P2M)) in the nation was previously approved by the Union Cabinet in 2021, which was presided over by PM Modi.
The Reserve Bank of India (RBI) established RuPay, a global financial services payment network in India, in 2012 with the goal of transitioning away from a cash-based economy.
A RuPay debit card is a plastic card that the bank issues to a customer who has an account with them and is used as a form of payment. There are numerous different varieties of RuPay debit cards, including the RuPay Classic, RuPay Platinum, RuPay Select, Contactless, and Government Schemes Debit Cards.
What is BHIM-UPI?
Indigenously developed payment application BHIM (Bharat Interface for Money) was launched by Prime Minister Narendra Modi in 2016. It is a biometric payment systems app that uses Aadhar platform and is based on a Unified Payment Interface (UPI) to facilitate e-payment directly through the bank.
It can be used on all mobile devices whether it’s a smartphone or feature phone or a phone without an internet connection.
