Good news for small traders! The central government has introduced a new project for UPI transactions. This initiative aims to encourage small traders to adopt digital payments. Traders can earn special rewards on UPI transactions of ₹2000. To avail of this benefit, you need to use the BHIM app.
How Does This Scheme Work?
Under this scheme, small traders who receive UPI payments of ₹2000 will get up to 0.15% of the amount as a cash incentive. This benefit is available only for transactions made through the BHIM app.
The government has allocated ₹1,500 crore for this program. However, the scheme is exclusively for small and micro traders—large traders are not eligible. Incentives will be paid directly to traders’ bank accounts every three months, with no extra charges to use this facility.
#Cabinet approves Incentive scheme for promotion of low-value BHIM-UPI transactions (P2M)
Only the UPI (P2M) transactions upto 2,000/- for Small Merchants are covered under the scheme
— PIB India (@PIB_India) March 19, 2025
Who Will Benefit the Most?
The scheme is designed for small traders such as shopkeepers, street vendors, and small business owners. For example, tea stall owners, grocery store operators, and street vendors who accept UPI payments will gain the most. It is especially beneficial for businesses that handle small transactions.
Why Is This Scheme Important?
This initiative is a great opportunity for small traders. It encourages them to adopt digital payments, making business transactions easier and more efficient. The government believes this will support the growth of small businesses and improve their financial stability.