Cabinet Approves ‘Incentive Scheme’ For Low-Value UPI Transactions

by · Inc42

SUMMARY

  • The scheme, with an estimated outlay of INR 1,500 Cr, will incentivise low-value BHIM-UPI transactions to encourage usage among small merchants
  • The incentive will be provided at the rate of 0.15% per transaction value for transactions up to INR 2,000 pertaining to the category of small merchants
  • With this move, the government aims to penetrate UPI from tier III to VI cities, by promoting products, including UPI 123PAY and UPI Lite