Cabinet Approves Incentive Scheme For Promotion Of Low-Value BHIM-UPI Transactions

The Union Cabinet has approved the Incentive Scheme for Promoting Low-Value BHIM-UPI Transactions Person to Merchant (P2M) for the financial year 2024-25. This scheme, with an estimated outlay of ₹1,500 crore, will be in effect from April 1, 2024, to March 31, 2025. The initiative specifically targets UPI (P2M) transactions up to ₹2,000 for small merchants. Under the scheme, an incentive of 0.15% per transaction value will be provided for eligible transactions. For each quarter, 80% of the admitted claim amount by acquiring banks will be disbursed unconditionally.  The remaining 20% will be reimbursed based on performance benchmarks, ensuring efficient and seamless digital payment adoption.