The Union Cabinet has approved the promotional incentives for Rupay debit cards and low-value transaction of BHIM (UPI), as per sources.
Approximately Rs 2,600 crore incentives have been approved for FY2022-23 which will be given on the use of Rupay debit cards and BHIM UPI through P2M (Person to Merchant) basis, added sources.
The Union Cabinet has also approved the setting up of three co-operative societies under the new Act.
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Earlier in 2021, the Union Cabinet, chaired by PM Modi, had approved an incentive scheme to promote RuPayDebit cards and low-value (upto Rs 2,000) BHIM-UPI transactions (Person-to-Merchant (P2M)] in the country.
What is a RuPay Debit Card?
RuPay is an Indian multinational financial service payment network launched by the Reserve Bank of India (RBI) in 2012 with an objective of a less cash economy.
A RuPay debit card is a plastic card used as a method of payment issued by the bank to a customer, who holds an account with them. There are many types of RuPay Debit Card, including RuPay Classic Debit Card, RuPay Platinum Debit Card, RuPay Select Debit Card, Contactless Debit Card and Government Schemes Debit Card.
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What is BHIM-UPI?
Indigenously developed payment application BHIM (Bharat Interface for Money) was launched by Prime Minister Narendra Modi in 2016. It is a biometric payment systems app that uses Aadhar platform and is based on a Unified Payment Interface (UPI) to facilitate e-payment directly through the bank.
It can be used on all mobile devices whether it’s a smartphone or feature phone or a phone without an internet connection.
