The scheme, which covers transactions up to Rs 2,000- for small merchants, will be implemented for one year, from April 1 to March 31, 2025.
Union Minister Ashwini Vaishnaw clarified the scheme would continue in the next year. Under this initiative, small merchants accepting UPI payments will receive an incentive at the rate of 0.15 per cent per transaction.
The incentive of 0.15 per cent per transaction will be provided to small merchants, helping them embrace digital payments without worrying about transaction fees.
This move aims to support local businesses and boost digital payments across the country. The scheme will cover 55 per cent of the total merchant transactions, an official release said.
Prime Minister Narendra Modi said the incentive scheme will encourage digital payments and further improve “ease of living”.
The promotion of digital payments is an integral part of the government’s strategy for financial inclusion and a cash-less economy.
