As per sources, the Union Cabinet has approved promotional incentives for BHIM (UPI) low-value transactions and Rupay debit cards.
As per multiple information, incentives of around Rs 2,600 crore have been approved for FY2022-23. These incentives will be given in exchange for using BHIM UPI and Rupay debit cards on a P2M (Person to Merchant) basis.
The Union Cabinet presided over by PM Modi, had earlier in 2021 approved a reward program to encourage the use of RuPayDebit cards and low-value (up to Rs 2,000) BHIM-UPI transactions (Person-to-Merchant (P2M)) across the nation.
What is a RuPay Debit Card?
The Reserve Bank of India (RBI) established RuPay, a global financial services payment network in India, in 2012 with the goal of transitioning away from a cash-based economy.
A RuPay debit card is a plastic card that the bank issues to a customer who has an account with them and is used as a form of payment. There are many different varieties of RuPay debit cards, including the RuPay Classic, RuPay Platinum, RuPay Select, Contactless, and Government Schemes Debit Cards.
What is BHIM-UPI?
In 2016, Prime Minister Narendra Modi unveiled the locally created payment software BHIM (Bharat Interface for Money). It is a biometric payment system software that relies on the Aadhar platform and a Unified Payment Interface (UPI) to enable e-payments made straight to banks.
Any mobile device, including smartphones, feature phones, and phones without an internet connection, can utilize it.