The Union Cabinet today approved an incentive scheme of Rs 1500 crore for the financial year 2024-25 to promote UPI transactions of less than Rs 2000. Under this scheme, the government will bear the MDR (Merchant Discount Rate) expenses on payments of less than Rs 2000 made by an individual to a shopkeeper.
UPI Transaction incentive: Along with the number of UPI transactions in the country, money transactions are also increasing rapidly. The special thing is that UPI is being liked so much in India that the rest of the online money transfer options are being used comparatively less.
However, UPI is still not being used as much as it should be in many parts of the country. In such a situation, the government wants to increase the number of UPI transactions. Therefore, the Union Cabinet took a big decision today.
Hindi NewsMoneyBenefit newsUPI transaction will get reward, government approved, know who will benefit
UPI transaction will get reward, government approved, know who will benefit
The Union Cabinet today approved an incentive scheme of Rs 1500 crore to promote UPI transactions of less than Rs 2000 for the financial year 2024-25. Under this scheme, the government will bear the MDR (Merchant Discount Rate) expenses on payment of less than Rs 2000 made by a person to a shopkeeper.
0.15 percent incentive will be given on every transaction
UPI Transaction incentive: Along with the rapid number of UPI transactions in the country, money transactions are also increasing rapidly. The special thing is that UPI is being liked so much in India that the rest of the online money transfer options are being used comparatively very less.
However, UPI is still not being used as much as it should be in many parts of the country. In such a situation, the government wants to increase the number of UPI transactions. Therefore, the Union Cabinet took a big decision today.
Government approves incentive scheme of Rs 1500 crore
The Union Cabinet today approved an incentive scheme of Rs 1500 crore for the financial year 2024-25 to promote UPI transactions less than Rs 2000. Under this scheme, the government will bear the MDR (Merchant Discount Rate) expenses on payments of less than Rs 2000 made by a person to a shopkeeper.
The statement said, “The Union Cabinet chaired by Prime Minister Narendra Modi today approved the incentive scheme for promoting low value BHIM-UPI transactions from ‘Person to Merchant’ (P2M) for the financial year 2024-25.”
0.15 percent incentive will be given on every transaction
The incentive scheme to promote low value BHIM-UPI transactions (P2M) will be implemented from 1 April 2024 to 31 March 2025 with an estimated outlay of Rs 1500 crore.
UPI (P2M) transactions of less than Rs 2000 will come under this scheme only for small traders or shopkeepers. According to the statement, “An incentive of 0.15 percent will be provided on each transaction value for transactions up to Rs 2000 related to the small traders category.”
A reward of Rs 2.25 will be given for receiving Rs 1500 through UPI
If we understand this decision of the government in simple language, then small shopkeepers will get a reward for accepting payment through UPI. If a shopkeeper receives Rs 1500 through UPI, then he will get an incentive of Rs 2.25 at the rate of 0.15 percent. Keep in mind that this scheme is only for small shopkeepers, for which shopkeepers will need a merchant UPI account.
