On December 17, 2021, the Ministry of Electronics and Information Technology has notified the decision of the Government to incentivise the acquiring Banks by paying percentage of value of RuPay Debit cards transactions (P2M) and low-value BHIM-UPI transaction (upto Rs. 2000) (P2M), for a period of one-year w.e.f. April 01, 2021.

Key provisions:

  • The Banks would be required to show at least 10% YOY growth rate in number of RuPay Debit card transaction and 50% YOY growth rate in number of BHIM-UPI transactions at the end of the last quarter of scheme.
  • To reduce the financial burden on the Government, lower incentive rate has been proposed on transactions done at merchants under Industry Programmes.
  • Reimbursement of the claims will be done on quarterly basis. On successful submission of the claims, 95% of the claimed amount will be reimbursed to the Banks after each quarter. The remaining 5% of the claimed amount of each quarter will be released at the end of last quarter of the scheme.
  • The incentive will be shared by the acquiring banks with other stakeholders. The distribution of the incentive amongst the stakeholders will be decided by NPCI in consultation with the Banks.
  • The Scheme is applicable to the Banks having operations in India and transactions done in India.
  • The operational guideline for implementation of the scheme will be issued to the acquiring banks by MeitY in consultation with NPCI.


*Tanvi Singh, Editorial Assistant has reported this brief.

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