Scheme for promotion of RuPay Cards and low-value BHIM-UPI transactions

On December 15, 2021, Union Cabinet approved an incentive scheme of worth Rs 1,300 crore for promoting RuPay Debit Cards and low-value BHIM-UPI transactions.

Key Points

  • Under the scheme, low value BHIM-UPI transactions of up to Rs 2,000 will be promoted in India.
  • Under this scheme, government will incentivise the acquiring banks by paying a percentage of value of transactions (P2M) which are done through RuPay Debit cards and low-value BHIM-UPI payments modes.
  • Scheme will be implemented at an estimated financial outlay of Rs 1,300 crore for one-year.
  • It will facilitate acquiring banks to build a robust digital payment ecosystem as well to promote BHIM-UPI digital transactions and RuPay Debit card across all sectors and segments of population. It will further deepen digital payments in India.
  • Scheme will also help the unbanked and marginalised populations in accessing digital modes of payments, outside the formal banking and financial system.


This scheme has been formulated in line with the Budget 2021-22 by the Government for further boosting the digital transactions in India.

BHIM (Bharat Interface for Money)

BHIM is an Indian mobile payment App. It has been developed by National Payments Corporation of India (NPCI). It is based on Unified Payments Interface (UPI). The app was launched on December 30, 2016. The app seeks to facilitate direct e-payments through banks and encourage cashless transactions. It supports all Indian banks that use UPI. It allows the user to transfer money instantly between 170 member banks of any two parties.

Unified Payments Interface (UPI)

UPI is an instant real-time payment system. It has been developed by National Payments Corporation of India (NPCI). It facilitates inter-bank person-to-merchant (P2M) transactions and peer-to-peer (P2P). It is regulated by Reserve Bank of India (RBI) and works instantly by transferring funds between two bank accounts on a mobile platform.




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