In an effort to boost digital payments in the country, the Union Cabinet approved a Rs 2,600 crore scheme on Wednesday to promote RuPay debit cards and low-value BHIM-UPI transactions.

Banks would be given financial incentives under the scheme to promote point-of-sale (PoS) and e-commerce transactions using RuPay and UPI in the current fiscal year (2022-23).

The government stated in a statement that the scheme would aid in the development of a robust digital payment ecosystem and would also promote UPI Lite and UPI 123PAY as cost-effective and user-friendly digital payment solutions in line with the goal of ‘Sabka Saath, Sabka Vikas.’

According to the government, the scheme will aid in the development of a robust digital payment ecosystem and will promote UPI Lite and UPI 123PAY as cost-effective and user-friendly digital payment solutions in line with the goal of ‘Sabka Saath, Sabka Vikas.’

The current year’s scheme was designed in accordance with the Union Budget announcement for 2022-23, in which Finance Minister Nirmala Sitharaman stated the government’s intention to continue financial support for digital payments. In the fiscal year 2021-22, the government approved an incentive scheme in accordance with the FY 2021-22 budget announcement to boost digital transactions even further.

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