The government officially announced the programme on Monday (January 16), about a week after the Union Cabinet approved INR 2,600 Cr in incentives to encourage digital payments. The initiative, which intends to promote RuPay debit cards and low-value BHIM-UPI transactions under INR 2,000 for the fiscal year 2022–2023 (FY23), was approved by the Center in its notification.
Incentives will be provided to acquiring banks at the rates outlined in the order to encourage point-of-sale (PoS) and online purchases. Acquiring banks will be compensated for RuPay debit card payments with a flat fee of 0.4% for non-industry programmes. The maximum amount will be INR 100. The acquiring banks will receive 0.15% of each transaction, up to a maximum of INR 6, for industry programmes.