Quick Summary
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved the 'Incentive Scheme for promotion of low-value BHIM-UPI transactions Person to Merchant (P2M)' for the financial year 2024-25 in the following manner: i. The incentive scheme for promotion of low-value BHIM-UPI transactions (P2M) will be implemented at an estimated outlay of 1,500 crore, from 01.04.2024 to 31.03.2025. ii. Only the UPI (P2M) transactions upto 2,000/- for Small Merchants are covered under the scheme.
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FAQ :
The scheme is designed to promote low-value Person-to-Merchant (P2M) BHIM-UPI transactions, particularly for small merchants, with an incentive of 0.15% on transactions up to £2,000.
The estimated outlay for the incentive scheme is £1,500 crore.
The incentive of 0.15% is specifically for small merchants on UPI (P2M) transactions up to £2,000. Large merchants do not receive incentives for transactions over £2,000.
Benefits include convenient and secure digital payments for citizens, enabling small merchants to accept UPI at no additional cost, supporting a less-cash economy, and improving cash flow for businesses.
To receive the full incentive, acquiring banks must maintain technical decline rates below 0.75% and system uptime greater than 99.5%.
The scheme will be implemented from 1st April 2024 to 31st March 2025.
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