Low-value BHIM-UPI transactions get a fillip

Cabinet okays ₹1,500 crore

- AJINKYA KAWALE

The Union Cabinet has approved a ₹1,500 crore incentive for promoting low-value BHIM-UPI peer-to-peer merchant (P2M) transactions for 2024-25. The scheme is being rolled out to promote the BHIM-UPI platform to achieve target volumes of 200 billion in FY25.

This is the first time the Centre has defined small and large merchants in the context of outlining BHIM-UPI incentives.

The Centre has set an incentive rate of 0.15 per cent for a transaction value of up to ₹2,000 made to small merchants, while large merchants in the same value bracket will receive no incentive. For transactions exceeding ₹2,000, there will be no incentive for anyone.