In a major push to strengthen India’s digital payment ecosystem, the Union Cabinet on Wednesday approved the extension of the Rs.1,500 crore incentive scheme aimed at promoting small-value UPI transactions.
The scheme is designed to encourage digital payments and minimize the cost burden on various stakeholders within the Unified Payments Interface (UPI) ecosystem. It seeks to incentivize small digital transactions, making cashless payments more accessible and convenient for the common man.
The incentive will primarily benefit payment service providers and banks that facilitate UPI transactions. This move is expected to further boost the adoption of digital payments across India, especially among small merchants and users who rely on low-ticket-size transactions for daily needs.
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The government’s decision aligns with its Digital India vision and aims to reduce dependence on cash while promoting a secure and efficient digital payments framework.
UPI has become India’s leading digital payments platform, recording billions of transactions every month. The extension of the incentive scheme is expected to enhance the momentum of small digital transactions and contribute to the country’s goal of becoming a less-cash economy.
