The Ministry of Electronics and Information Technology (MeitY) has issued a notification on the Incentive scheme for the promotion of RuPay Debit Cards and low-value BHIM-UPI transactions.
The scheme will provide financial incentive to acquiring banks for promoting point-of-sale (PoS) and e-commerce transactions using RuPay Debit Cards and person-to-merchant (P2M) transactions of low value (i.e., up to ₹ 2,000) on the BHIM-UPI platform, as per the incentive rates.
The scheme will also promote UPI Lite and UPI 123PAY as economical and user-friendly digital payments solutions.
Reimbursement of claims of banks will be done on a quarterly basis, to the following extent:
- For the first, second and third quarters of the scheme, 90% of the admitted claim amount for the bank;
- For the fourth quarter of the scheme, 80% of the admitted claim amount for the bank
The incentive will be shared by the acquiring banks with other payment system participants and the payment system operator, in the proportion and manner decided by National Payments Corporation of India (NPCI) in consultation with the participating banks.
The Scheme is applicable to the Banks having operations in India and transactions done in India. The duration of the scheme is one year, i.e. FY2022-23, with effect from 1.4.2022.
