Rs 1300 Crore Cashbacks, Incentives For Using UPI, RuPay: Bad News For Visa, MasterCard?
Do you know UPI transactions increased by double digits during the lockdown months as the virus spread and customers began to prefer digital payments!
And thus march saw a significant increase in UPI volumes, with total transactions exceeding $5 trillion, up 18% from February.
Another big boost! The Union Cabinet approved a Rs 1,300-crore incentive programme to promote transactions conducted via UPI and Rupay debit cards on December 15.
Big Boost To Digital Payments
The announcement was made by the Electronics and IT Minister Ashwini Vaishnaw announced on Wednesday.
He stated that as part of the merchant discount rate, the government will reimburse transaction fees paid on digital payments made by individuals to merchants (MDR).
“In the coming one year…The government will invest around Rs 1,300 crore so that more and more people move towards digital payments,” Vaishnav said. The scheme will cover reimbursement on digital transactions of up to Rs 2,000, using Rupay debit cards and BHIM-UPI.
Banks Will Build A Robust Digital Payment Ecosystem !
“Under the scheme, the acquiring banks will be incentivised by the Government, by way of paying a percentage of the value of transactions (P2M) done through RuPay Debit cards and low-value BHIM-UPI modes of payments, at an estimated financial outlay of Rs 1,300 crore for a period of one-year w.E.F. April 01, 2021,”
An official statement said.
So according to the release, this scheme will be super beneficial for the banks and help in many ways.
Firstly Banks will develop a strong digital payment ecosystem as it would promote Rupay debit card and BHIM-UPI digital transactions according to the release.