UPI Incentive Scheme announced
UPI Promotion Scheme: The central government has taken an important decision on 19 March 2025, under which small traders will get an incentive of 0.15% on UPI (Unified Payments Interface) transactions up to Rs 2000. The scheme has been implemented for the financial year 2024-25, the main objective of promoting small transactions. The estimated expenditure on this scheme will be Rs 1500 crore, which will prove to be a major relief for small traders.
Small traders will benefit
Under this scheme, small traders will receive an incentive of 0.15% on every UPI transaction up to Rs 2000. Big traders will be deprived of the benefits of this scheme. The government aims to encourage small traders to digital payments, so that they can avail UPI services without any additional fee.
What is the purpose of the scheme?
According to government statement, this scheme will provide customers fast, safe and convenient payment options. The scheme will be helpful in promoting digital transactions and will provide better access to financial services like loan to people. A major advantage of the scheme is that small traders will be able to accept payment through UPI without any extra expenditure, which will increase their business and customer base.
Under this scheme, banks will have to distribute 80% of the claims sanctioned in every quarter without any condition, while the remaining 20% will be subject to certain conditions. These conditions will depend on the technical status and system uptime of banks. The government's goal is to increase both the number and value of digital transactions across the country through this scheme. In the last three years, the government has distributed an incentive of more than Rs 7000 crore to encourage digital transactions. In addition, various solutions have been introduced to increase UPI's reach in small and remote areas.
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