The central government has now approved promotional incentives for Rupay debit cards and transactions made through UPI.
In fact, incentives worth Rs 2,600 crore for FY 2022-23 have been approved as well!
Read on to find out all the details!
Rewards Declared For BHIM And Rupay Transactions by Central Government
According to Union Minister Bhupender Yadav, rewards for using BHIM and Rupay debit cards for P2M (person-to-merchant) transactions will be rewarded. He stated that the purpose of allocating Rs 2,600 crore is to expand the digital payment ecosystem further.
He continued by saying that the program would help farmers, MSME businesses, and unorganized businesses.
For promoting Point of Sale (PoS) and e-commerce transactions using RuPay and UPI in the current fiscal year, banks would receive financial incentives under the scheme.
It would support the development of a strong digital payment ecosystem. The programme would also advertise UPI Lite and UPI123PAY as affordable and straightforward digital payment options.
As per an official tweet, “Cabinet approves the incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions (Person-to-Merchant).”
Under the Multi-State Cooperative Societies (MSCS) Act of 2002, the Union Cabinet also approved the creation of a national level multi-state cooperative export society.
Pay Extra Charge Beyond Rs 2000 Transaction For Using Rupay Card on UPI
We had reported earlier about an NPCI circular directed that no charge will be applicable for RuPay credit card use on Unified Payments Interface (UPI) for transactions up to Rs 2,000 in line with the RBI guidelines.
When it comes to RuPay credit card, it has been operational for the last four years.
Now, all major banks are enabled and are issuing incremental cards for both commercial and retail segments.
Further, the circular dated October 4 said, “During credit card on-boarding on the apps, the device binding and UPI PIN setting process shall include and be construed as customer consent for credit card enablement for all types of transactions,”.
Moreover, the existing process from the app will apply to credit cards too in case of international transaction enablement, according to the National Payments Corporation of India (NPCI) as mentioned in the circular.
