Incentive scheme for promotion of RuPay Debit Cards

The Indian government has recently approved an incentive scheme worth Rs 2,600 crore to promote Rupay debit card and low-value BHIM-UPI transactions in the current financial year. The decision was made during a meeting of the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi.

Promoting Digital Payments

Union Minister Bhupender Yadav announced that the incentives will be given for the use of Rupay debit cards and BHIM-UPI, and that it will be provided to banks for promoting Point of Sale (PoS) and e-commerce transactions using RuPay and UPI.

This scheme is in line with Union Finance Minister Nirmala Sitharaman’s announcement in last year’s budget speech, which outlined the government’s intent to continue supporting digital payments. The focus was on promoting digital payments platforms that are economical and user-friendly, with the aim of building a robust digital payments ecosystem in India.

Growing Popularity of UPI

UPI, or Unified Payments Interface, has seen a record number of transactions in December 2022. With 782.9 crore digital payment transactions worth Rs 12.82 lakh crore, it has become a popular digital payment method in India. The scheme will also promote UPI Lite and UPI123PAY as economical and user-friendly digital payments.

Promoting Exports, Organic Products, and Seeds

The Indian government has also approved a plan to set up three new cooperatives to promote exports, organic products and seeds. Union Minister Bhupender Yadav announced that the Cabinet has approved the establishment of the National Export Society, National Cooperative Society for Organic Products and National Level Multi-state Seed Cooperative Society.

These cooperatives, which are associated with farmers, farmers’ income and agriculture production, will help realize the vision of “Sahakar Se Samriddhi” (prosperity through cooperatives), and boost rural growth and farmers’ income.

Category: Economy & Banking Current Affairs - 2024