New Delhi, March 21 -- The Union cabinet on Wednesday approved a Rs.1,500 crore incentive to promote small-value BHIM-UPI (P2M) transactions up to Rs.2,000, a move aimed at benefiting small merchants, Union minister Ashwini Vaishnaw said on Wednesday.
Under the Digital India Incentive scheme, the government will provide a 0.15% incentive to industry participants for UPI transactions lower than Rs.2,000 from customers to small merchants for FY25, Vaishnaw said.
This means that banks and app service providers facilitating such UPI payments for small merchants will continue to receive incentives to facilitate the home-grown digital payments mechanism.
"The incentive is paid by the government to the acquiring bank (merchant's bank) and there...