UPI Incentive Scheme: The Union Cabinet, chaired by Prime Minister Narendra Modi, has made a significant decision on UPI payments for 2024-25. The government has approved an incentive scheme estimated at Rs 1,500 crore. This scheme will greatly relieve small shopkeepers, who usually avoid taking UPI payments, and accelerate digital transactions among them.
Incentive Scheme Will Be Applicable Up To This Amount
A government statement said that the Union Cabinet, chaired by Prime Minister Narendra Modi, had approved the incentive scheme to promote low-value BHIM-UPI transactions from ‘person to merchant’ (P2M) for 2024-25. Under this government scheme, small shopkeepers taking payments through UPI will get a 0.15 per cent incentive per transaction. This scheme will apply only to UPI transactions up to Rs 2,000.
If a customer buys goods worth Rs 1,000 and pays through UPI, the shopkeeper will get a 1.5 percent incentive. The government will also pay the banks an incentive. The government will immediately give 80 percent of the banks’ claim amount. The remaining 20 percent will be given only when the bank maintains a technical decline rate below 0.75 percent and system uptime above 99.5 percent.
This Is The Purpose Of This Government Scheme
The government’s aim with this scheme is to achieve the target of UPI transactions worth Rs 20,000 crore in 2024-25. The government is also doing this work to promote digital payments in remote areas of the country because UPI is a safe and fast mode of payment in today’s era. With this, money comes directly to the bank account. Along with this, a record of digital payments will be created, so it will also be easy to take a loan in the future.
