{"id":39479,"date":"2025-03-20T19:08:27","date_gmt":"2025-03-20T13:38:27","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=39479"},"modified":"2025-03-20T19:08:28","modified_gmt":"2025-03-20T13:38:28","slug":"cabinet-approved-incentive-scheme-for-promotion-of-low-value-bhim-upi-transactions","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/20-03-2025\/cabinet-approved-incentive-scheme-for-promotion-of-low-value-bhim-upi-transactions","title":{"rendered":"Cabinet Approved Incentive Scheme for Promotion of Low-value BHIM-UPI Transactions"},"content":{"rendered":"\n

Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n

In News<\/strong><\/h2>\n\n\n\n
    \n
  • The Union Cabinet, chaired by the Prime Minister has approved an incentive scheme to promote low-value BHIM-UPI transactions (Person-to-Merchant – P2M) for the financial year 2024-25.<\/strong><\/li>\n<\/ul>\n\n\n\n

    Key Highlights<\/strong><\/h2>\n\n\n\n
      \n
    • Incentive Structure:<\/strong>\n
        \n
      • 0.15% per transaction incentive for small merchant transactions up to \u20b92,000.<\/li>\n\n\n\n
      • Incentive distributed among Acquiring Bank, Issuer Bank, Payment Service Provider Bank, and App Providers.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
      • Objectives:<\/strong>\n
          \n
        • Promote the indigenous BHIM-UPI platform.<\/strong><\/li>\n\n\n\n
        • Strengthen the indigenous BHIM-UPI platform and boost transaction volumes to \u20b920,000 crore in FY 2024-25.<\/li>\n\n\n\n
        • Promote feature phone-based UPI 123PAY & offline UPI Lite\/LiteX for financial inclusion.<\/strong><\/li>\n\n\n\n
        • Encourage UPI adoption in Tier 3 to Tier 6 cities<\/strong>, especially rural and remote areas.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
        • Key Benefits:<\/strong>\n
            \n
          • Zero cost UPI services for small merchants.<\/li>\n\n\n\n
          • Continues the Merchant Discount Rate (MDR) exemption introduced in 2020 for UPI transactions.\n
              \n
            • MDR is the fee paid by merchants when they accept digital payments.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

              What is UPI?<\/strong><\/h2>\n\n\n\n
                \n
              • The Unified Payments Interface (UPI) <\/strong>is a real-time payment system developed by the National Payments Corporation of India (NPCI).<\/strong> It allows users to link multiple bank accounts into a single mobile application, enabling instant money transfers.<\/li>\n\n\n\n
              • BHIM-UPI is the government-backed UPI application, launched in 2016<\/strong>, designed to promote seamless, fast, and secure digital payments.<\/li>\n\n\n\n
              • The NPCI International Payments Limited (NIPL), a subsidiary of NPCI<\/strong>, is working to expand UPI & RuPay globally. UPI is now accepted in Singapore, UAE, France, Sri Lanka, Nepal, and other countries.<\/li>\n<\/ul>\n\n\n\n

                Source: BS<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

                The Union Cabinet, chaired by the Prime Minister has approved an incentive scheme to promote low-value BHIM-UPI transactions (Person-to-Merchant – P2M) for the financial year 2024-25.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-39479","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/39479","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=39479"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/39479\/revisions"}],"predecessor-version":[{"id":39480,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/39479\/revisions\/39480"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=39479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=39479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=39479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}