New Delhi, March 20 -- The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the 'Incentive Scheme for Promotion of Low-Value BHIM-UPI Transactions Person to Merchant (P2M)' for the financial year 2024-25. This initiative aims to enhance digital payment adoption among small merchants and support the government's vision of a less-cash economy.

Under the scheme, an estimated outlay of Rs. 1,500 crores has been allocated for implementation from April 1, 2024, to March 31, 2025. The scheme specifically covers UPI (P2M) transactions up to Rs. 2,000 for small merchants. Transactions above this threshold and transactions by large merchants are not eligible for incentives.

Small merchants processing UPI transactions up to Rs....