India, March 19 -- The Union Cabinet on Wednesday approved an incentive scheme to promote low-value BHIM-UPI transactions (P2M) for the financial year 2024-25. Aimed at encouraging small merchants to adopt the BHIM-UPI platform, the scheme supports the government's vision of a less-cash economy.
With an estimated allocation of ?1,500 crore, the scheme will be implemented from April 1, 2024, to March 31, 2025. It focuses on UPI transactions under ?2,000, specifically benefiting small merchants. Under this initiative, small merchants will receive a 0.15% incentive per transaction for amounts up to ?2,000, while large merchants will not qualify.
Each quarter, 80% of the approved claim amount will be disbursed unconditionally, with the remain...