The Union Cabinet chaired by Prime Minister Narendra Modi has taken an important decision to encourage UPI payments for the financial year 2024-25. The government has approved an incentive scheme estimated at Rs 1,500 crore, which will benefit small shopkeepers and promote digital payments. The initiative aims to increase the trend of accepting UPI among small merchants and make digital transactions accessible. Do you also want to know how beneficial this scheme is for you? So let’s know.

The subsidy will be available on transactions up to ₹ 2,000

According to a statement issued by the government, the scheme will be applicable on ‘person to merchant’ (P2M) BHIM-UPI transactions up to ₹ 2,000. Under this scheme, small shopkeepers accepting UPI payments will get an incentive of 0.15% per transaction.

For example, if a customer pays Rs 1,000 through UPI, the shopkeeper will get an incentive of Rs 1.5. Apart from this, the government will also give incentives to banks, in which 80% of the claim amount will be released immediately, while the remaining 20% ​​will be given when the bank maintains a technical decline rate of less than 0.75% and system uptime of more than 99.5%.

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Target to promote digital payments

The government aims to encourage UPI transactions worth Rs 20,000 crore in 2024-25 under this scheme. This step has been taken to promote digital payments, especially in remote areas. UPI transactions not only bring money directly to the bank account but also create a digital record of it, which will make it easier for merchants to get loans in the future.

This scheme is a big incentive for small shopkeepers. It will not only make them financially strong but will also promote digital transactions. This step of the government will play an important role in realizing the dream of Digital India. Now every shop, every transaction will be digital, which will increase transparency and convenience.

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