{"id":171250,"date":"2025-03-21T11:47:13","date_gmt":"2025-03-21T06:17:13","guid":{"rendered":"https:\/\/www.gkseries.com\/blog\/?p=171250"},"modified":"2025-03-21T11:47:15","modified_gmt":"2025-03-21T06:17:15","slug":"cabinet-approves-%e2%82%b91500-crore-upi-incentive-scheme-for-banks","status":"publish","type":"post","link":"https:\/\/www.gkseries.com\/blog\/cabinet-approves-%e2%82%b91500-crore-upi-incentive-scheme-for-banks\/","title":{"rendered":"Cabinet Approves \u20b91,500 Crore UPI Incentive Scheme for Banks"},"content":{"rendered":"\n<p>The Union Cabinet has approved a \u20b91,500 crore incentive scheme for banks to encourage Unified Payments Interface (UPI) transactions that are under \u20b92,000 for the fiscal year 2024\u201325. With this scheme, banks will earn a 0.15% incentive on transactions made by small merchants, and 20% of the payout will be linked to the performance of the bank&#8217;s UPI infrastructure. The aim is to promote digital payment usage, particularly among small businesses, while avoiding any merchant fees.<\/p>\n\n\n\n<p><strong>Key Highlights:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Incentive for Small Transactions:<\/strong> Banks will earn 0.15% of the transaction value for UPI payments under \u20b92,000.<\/li>\n\n\n\n<li><strong>Infrastructure Performance:<\/strong> 20% of the incentive will depend on the reliability of the bank&#8217;s UPI infrastructure.<\/li>\n\n\n\n<li><strong>No Incentive for Large Transactions:<\/strong> Transactions above \u20b92,000 will not be eligible for the incentive.<\/li>\n\n\n\n<li><strong>Encouraging UPI Expansion:<\/strong> The scheme encourages merchants to accept UPI payments without incurring merchant fees, unlike card payments that attract charges.<\/li>\n\n\n\n<li><strong>Gradual Reduction in Government Outlay:<\/strong> The government aims to promote UPI growth while managing fiscal expenditure. The target for total transaction volumes in 2024-25 is \u20b920,000 crore.<\/li>\n\n\n\n<li><strong>Previous Year\u2019s Payouts:<\/strong> In FY 2023-24, banks received \u20b93,631 crore in incentives, exceeding the total of the previous two years. This included incentives for RuPay debit card transactions.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The Union Cabinet has approved a \u20b91,500 crore incentive scheme for banks to encourage Unified Payments Interface (UPI) transactions that are under \u20b92,000 for the fiscal year 2024\u201325. With this scheme, banks will earn a 0.15% incentive on transactions made by small merchants, and 20% of the payout will be linked to the performance of [&hellip;]<\/p>\n","protected":false},"author":419,"featured_media":171251,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[5364],"tags":[3464],"class_list":["post-171250","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs-march-2025","tag-upi-digital-payments"],"_links":{"self":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/171250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/users\/419"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/comments?post=171250"}],"version-history":[{"count":1,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/171250\/revisions"}],"predecessor-version":[{"id":171252,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/171250\/revisions\/171252"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media\/171251"}],"wp:attachment":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media?parent=171250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/categories?post=171250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/tags?post=171250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}