Good news on RuPay Debit Cards, BHIM-UPI transactions; see how things may improve
- The Cabinet has approved a scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions.
The Union Cabinet, chaired by the Prime Minister Narendra Modi, on Wednesday approved an incentive scheme to promote RuPay Debit cards and low-value [up to ₹2,000) BHIM-UPI transactions (Person-to-Merchant (P2M)] in the country. Under the scheme, the acquiring banks will be incentivised by the government, by way of paying percentage of value of transactions (P2M) done through RuPay Debit cards and low-value BHIM-UPI modes of payments, at an estimated financial outlay of ₹1,300 crore for a period of one year with effect from April 01, 2021. It will also help in making accessible digital modes of payments to unbanked and marginalized populations, who are outside of the formal banking and financial system.
"This scheme will facilitate acquiring Banks in building a robust digital payment ecosystem and promoting RuPay Debit card and BHIM-UPI digital transactions, across all sectors and segments of the population and further deepening of digital payments in the country," the Cabinet said in a statement.
The scheme will further spur research and development and innovation in the fintech space, and will help the government in further deepening digital payments in various parts of countries. It can be noted that the scheme has been formulated in compliance with the Budget announcements (FY 2021-22) by the government to give further boost to digital transactions in the country.
India today is one of the most efficient payments markets in the world. It can be known that since the outbreak of the Coronavirus pandemic, the government has been working on boosting digitalization in the country.
What is RuPay?
RuPay is a product of National Payments Corporation of India (NPCI), the umbrella organisation that powers retail payments in the country. It is the first-of-its-kind global Card payment network of India, with wide acceptance at ATMs, POS devices and e-commerce websites across the country. It is a highly secure network that protects against anti-phishing. RuPay also fulfils RBI’s vision of initiating a ‘less cash’ economy.
What is BHIM?
Bharat Interface for Money (BHIM) is a payment app that lets you make simple, easy and quick transactions using Unified Payments Interface (UPI). You can make direct bank payments to anyone on UPI using their UPI ID or scanning their QR with the BHIM app. You can also request money through the app from a UPI ID.