## Policy Analysis Report: Incentive Scheme for Promotion of RuPay Debit Cards and Low-Value BHIM-UPI Transactions (P2M)
**1. Executive Summary:**
This report analyzes a new government policy, outlined in the provided document, designed to incentivize the use of RuPay Debit cards and low-value BHIM-UPI transactions (up to ₹2,000) for Person-to-Merchant (P2M) payments. The core purpose is to boost digital payment adoption, particularly in untapped market segments and sectors, by providing financial incentives to acquiring banks. Key findings include the specific incentive rates for different transaction types and the performance-based disbursement mechanism.
**2. Introduction:**
The purpose of this report is to provide an informative analysis of the government policy notification regarding the "Incentive scheme for promotion of RuPay Debit cards and low-value BHIMUPI transactions P2M," as detailed in the provided policy text dated December 17, 2021. This analysis focuses solely on the information presented within the document.
**3. Policy Overview:**
* This is a **New Policy**.
* **Core Objective(s):** To incentivize acquiring banks to promote the use of RuPay Debit cards and low-value BHIM-UPI (up to ₹2,000) transactions for P2M payments, thereby boosting digital payment adoption and expanding its reach within the country.
**4. Background and Rationale:**
* The policy addresses the need to further accelerate the adoption of digital payments in India. While digital transactions have grown significantly, cash continues to be widely used. The policy aims to incentivize digital payments targeting untapped markets and sectors. The policy also acknowledges the role of digital payments during the COVID-19 pandemic, highlighting their safety and contribution to the economy.
**5. Key Provisions:**
The policy establishes an incentive scheme for acquiring banks based on the volume and value of RuPay Debit card and BHIM-UPI transactions (up to ₹2,000) for P2M payments. Key provisions include:
* **Incentive Rates:**
* **RuPay Debit Card (P2M):**
* 0.40% per transaction (capped at ₹100) for POS and e-commerce transactions *other than* Industry Programmes.
* 0.15% per transaction (capped at ₹6) for POS and e-commerce transactions within specified Industry Programmes (Insurance, Mutual Fund, Government, Education, Railways, Agriculture, Fuel, Jewellery, and Hospital).
* **BHIM-UPI (P2M up to ₹2,000):**
* 0.25% per transaction for transactions *other than* Industry Programmes.
* 0.15% per transaction for Industry Programmes (Insurance, Mutual fund, Government, Education, Railways, Agriculture, 1 Debt Collections, Fuel, Petroleum products, POI Funding transaction, Telecommunication, Utility payments, Business Personal Services and Hospital.)
* **Duration:** The scheme is for one year, effective from April 01, 2021.
* **Financial Outlay:** The estimated financial outlay is ₹1,300 crore, which is fungible between RuPay Debit cards and BHIM-UPI.
* **Growth Requirements:** Banks must demonstrate a minimum 10% year-on-year (YOY) growth rate in the number of RuPay Debit card transactions and a 50% YOY growth rate in the number of BHIM-UPI transactions.
* **Reimbursement:** Claims will be reimbursed quarterly, with 95% of the claimed amount disbursed after each quarter. The remaining 5% per quarter will be released at the end of the scheme, subject to meeting the specified growth rates.
* **Stakeholder Incentive Sharing:** The acquiring banks are expected to share the incentive with other stakeholders.
* **Eligibility:** The scheme applies to banks operating in India for transactions done in India.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders are:
* **Acquiring Banks:** Banks that process RuPay Debit card and BHIM-UPI P2M transactions.
* **Merchants:** Businesses that accept RuPay Debit cards and BHIM-UPI payments.
* **NPCI (National Payments Corporation of India):** Involved in consultation with MeitY and banks.
* **Consumers:** Indirectly affected through increased acceptance and promotion of digital payment methods.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:**
* **Ministry of Electronics and Information Technology (MeitY):** Responsible for overall scheme management, including issuing operational guidelines in consultation with NPCI and reviewing fund utilization.
* **NPCI:** Consulted by MeitY for operational guidelines and determines the distribution of incentives among stakeholders in consultation with the Banks.
* **Timelines/Procedures:**
* Scheme Duration: One year, starting April 1, 2021.
* Claim Reimbursement: Quarterly, with a final disbursement contingent on meeting growth targets.
* Growth Rate Review: Conducted by MeitY at the end of the scheme's duration.
* Operational guidelines will be issued by MeitY in consultation with NPCI.
**8. Expected Outcomes / Impact of Changes:**
The intended outcomes of this policy are:
* Increased adoption of RuPay Debit cards and BHIM-UPI for P2M transactions.
* Expansion of digital payments into new market segments and sectors.
* Reduced reliance on cash transactions.
* Promotion of a more digital economy.
**9. Conclusion:**
The "Incentive scheme for promotion of RuPay Debit cards and low-value BHIMUPI transactions P2M" represents a significant effort by the government to accelerate digital payment adoption in India. By providing financial incentives to acquiring banks and setting clear performance benchmarks, the policy aims to create a favorable environment for the increased use of RuPay Debit cards and BHIM-UPI, ultimately contributing to a more digital and cashless economy. The performance-based disbursement mechanism incentivizes banks to actively promote these payment methods and achieve significant growth in transaction volumes.
Key Entities Referenced
RuPay Debit cards: A type of debit card being promoted through an incentive scheme.
BHIMUPI: Bharat Interface for Money - Unified Payments Interface, a mobile payment system being promoted through an incentive scheme.
Ministry of Electronics and Information Technology: The government ministry responsible for the incentive scheme.
New Delhi: The location where the notification was issued.
FY 201718: Financial Year 2017-2018
FY 202021: Financial Year 2020-2021
FY 202122: Financial Year 2021-2022
April 01, 2021: The effective start date of the incentive scheme.
Insurance: An industry program included in incentive scheme.
Mutual Fund: An industry program included in incentive scheme.
Government: An industry program included in incentive scheme.
Education: An industry program included in incentive scheme.
Railways: An industry program included in incentive scheme.
Agriculture: An industry program included in incentive scheme.
Fuel: An industry program included in incentive scheme.
Jewellery: An industry program included in incentive scheme.
Hospital: An industry program included in incentive scheme.
NPCI: National Payments Corporation of India, an organization consulted by MeitY for the scheme.
Government of India Press, Ring Road, Mayapuri, New Delhi: Place of printing
Delhi: Place of publication of document
Dr. RAJENDRA KUMAR: Additional Secretary
रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-17122021-231960
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असाधारण
EXTRAORDINARY
भाग I—खण्ड 1
PART I—Section 1
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 368] नई ददल्ली, िुक्रिार, ददसम्ब र 17, 2021/अग्रहायण 26, 1943
No. 368] NEW DELHI, FRIDAY, DECEMBER 17, 2021/AGRAHAYANA 26, 1943
इलक्ट्े रॉजनकी और सचू ना प्रौद्योजगकी मत्रं ालय
अजधसचू ना
नई ददल्ली, 17 ददसम् बर, 2021
जिषय : रुप ेडेजबट काडड और कम मल्ू य िाल ेभीम-यपू ीआई लने देन (पी2एम) को बढािा देन ेके जलए प्रोत्साहन योजना
स.ं 24(1)/2020-डीपीडी-भाग (2).—
1. जडजजटल भुगतान को बढािा देने के जलए सरकार कई पहल कर रही ह।ै जपछले कुछ िषों म ें दिे भर म ें जडजजटल
भुगतान लने देन म ें जबरदस्ट्त िृजि देखी गई ह ैजहााँ जित्त िष ड 2017-18 म ें लने देन की संख्या 2,071 करोड़ स े बढकर
जित्त िषड 2020-21 म ें 5,554 करोड़ हो गई ह।ै ितडमान की कोजिड महामारी म,ें जडजजटल भगु तान, भुगतान के
संपकड-रजहत तरीकों के माध्यम स े नागररकों की सुरक्षा को सक्षम बनाता ह ै और साथ ही अथव्यड िस्ट्था को गजत प्रदान
करता ह।ै
2. हालांदक जपछले कुछ िषों म ें जडजजटल भगु तान म ें अभूतपूिड िृजि हुई ह,ै लेदकन इसमें और िृजि की संभािना ह ै
क्ट्योंदक नकदी का प्रयोग अभी भी बड़े पैमाने पर जारी ह।ै इसजलए, अप्रयुक्त बाजारों/खंडों/क्षत्रे ों को लजक्षत करते हुए,
जडजजटल भगु तानों के अगं ीकरण को बढािा देना महत्िपूण ड ह।ै
3. बजट घोषणा (जित्त िषड 2021-22) के अनुपालन म ें और दिे म ें जडजजटल लने देन को और अजधक बढािा देने के जलए,
01 अप्रैल, 2021 स े एक िषड की अिजध के जलए सरकार द्वारा रूपे डेजबट काड ड लेनदेन (पी2एम) और कम मूल्य
िाले भीम-यूपीआई लेनदेन ( ₹ 2,000 तक) (पी2एम) के मल्ू य के प्रजतित का भगु तान करके अजधग्रहण करने िाल े
बैंकों को प्रोत्साजहत करने का जनणडय जलया गया ह।ै
7400 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1]
4. अजधग्रहण करने िाल े बैंकों को सरकार द्वारा जनम्नजलजखत दरों पर प्रोत्साहन प्रदान दकया जाएगा:
रुप ेडेजबट काडड
व्यापारी श्रणे ी प्रजत लने देन प्रोत्साहन दर
पीओएस और ईकॉम लने देन (उद्योग कायडक्रमों के अलािा) 0.40% ₹ 100 पर कैप्ड
पीओएस और ईकॉम लने देन (उद्योग कायडक्रम*) 0.15% ₹ 6 पर कैप्ड
*उद्योग कायक्रड म, याजन बीमा, म्यूचुअल फंड, सरकार, जिक्षा, रेलि,े कृजष, ईंधन, आभूषण और अस्ट्पताल।
भीम-यपू ीआई पी2एम लने देन (₹ 2,000 तक)
व्यापारी श्रणे ी प्रजत लने देन प्रोत्साहन दर
उद्योग कायडक्रमों के अलािा 0.25%
उद्योग कायडक्रम* 0.15%
* उद्योग कायडक्रम, याजन बीमा, म्यूचुअल फंड, सरकार, जिक्षा, रेलि,े कृजष, ऋण सग्रं ह, ईंधन, पेरोजलयम उत्पाद, पीओआई
फंडडग लेनदेन, दरू संचार, उपयोजगता भुगतान, व्यिसाय/ व्यजक्तगत सेिाए ं और अस्ट्पताल।
i. सरकार पर जित्तीय बोझ को कम करन े के जलए उद्योग कायडक्रमों के तहत व्यापाररयों द्वारा दकए गए लेनदेनों पर
कम प्रोत्साहन दर का प्रस्ट्ताि दकया गया ह,ै जैसा दक ऊपर उल्लेख दकया गया ह।ै
ii. एनपीसीआई के परामिड स े एमईआईटीिाई, योजना के तहत जनजधयों के उपयोग की समय-समय पर समीक्षा करे
और तदनुसार उद्योग कायडक्रमों को िाजमल करे/हटाये ।
iii. प्रस्ट्ताजित योजना की अिजध 01 अप्रलै , 2021 स े एक िष ड तक ह।ै
iv. योजना का अनुमाजनत जित्तीय पररव्यय ₹ 1,300 करोड़ ह।ै
v. रुपे डेजबट काडड और भीम-यूपीआई के बीच ₹ 1,300 करोड़ का आबंटन बदला जा सकेगा।
vi. बैंकों को योजना की अंजतम जतमाही के अंत म ें रुपे डेजबट काड ड लेनदेन की संख्या म ें िष-ड दर-िषड कम स े कम 10%
िृजि दर (कुल जमलाकर, पी2एम तक सीजमत नहीं) और भीम-यूपीआई लेनदने की संख्या म ें िष-ड दर-िषड कम स े
कम 50% िृजि दर (कुल जमलाकर, पी2एम तक सीजमत नहीं) ददखाने की आिश्यकता ह।ै
vii. दािों की प्रजतपूर्तत जतमाही आधार पर की जाएगी। दािों को सफलतापूिडक प्रस्ट्तुत करने पर, दािा की गई राजि
का 95% प्रत्येक जतमाही के बाद बैंकों को िापस कर ददया जाएगा। प्रत्येक जतमाही की दािा की गई राजि का िेष
5% ,योजना की अंजतम जतमाही के अंत म ें जारी दकया जाएगा।
viii. एमईआईटीिाई जपछली जतमाही के अंत म ें प्रत्येक बैंक के रूपे डेजबट काड ड (मात्रा) और भीम-यूपीआई (मात्रा)
लेनदने की िृजि की समीक्षा करेगा। जपछली तीन जतमाजहयों (प्रजत जतमाही 5%) की लंजबत राजि को अंजतम
जतमाही की दािा की गई राजि के साथ केिल तभी जारी दकया जाएगा, यदद बैंक जनर्ददष्ट जिकास दर को परू ा
करता ह,ै जजसका उल्लेख उपरोक्त परै ा vi म ें दकया गया ह,ै अन्यथा प्रजतधाररत राजि, याजन जपछली तीन
जतमाजहयों के प्रजत जतमाही 5% और अंजतम जतमाही की दािा की गई राजि का 5% बैंक को जारी नहीं दकया
जाएगा।
ix. अजधग्रहण करन े िाले बैंकों द्वारा अन्य स्ट्टेकहोल्डरों के साथ प्रोत्साहन राजि साझा की जाएगी। स्ट्टेकहोल्डरों के
बीच प्रोत्साहन के जितरण का जनणडय एनपीसीआई द्वारा बैंकों के परामि डस े दकया जाएगा।
x. यह योजना भारत म ें पररचालन करन े िाले बैंकों और भारत म ेंदकए गए लेनदने पर लागू ह ै।
xi. योजना के कायाडन्ियन के जलए पररचालन ददिाजनदिे , एनपीसीआई के परामि ड स े एमईआईटीिाई द्वारा
अजधग्रहण करने िाल े बैंकों को जारी दकए जाएंगे।
डॉ. राजेंद्र कुमार, अपर सजचि[भाग I—खण् ड 1] भारत का राजपत्र : असाधारण 3
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
NOTIFICATION
New Delhi, the 17th December, 2021
Subject: Incentive scheme for promotion of RuPay Debit cards and low-value
BHIM-UPI transactions (P2M)
No. 24(1)/2020-DPD-Part(2).—
1. The Government is taking various initiatives to promote digital payments. Over past few years, digital
payment transactions have witnessed tremendous growth across the country with the number of
transactions growing from 2,071 crore in FY 2017-18 to 5,554 crore in FY 2020-21. In the present
Covid pandemic, digital payments enable safety for citizens through contact-less modes of payments
as well as provide impetus to the economy.
2. Although there has been unprecedented growth in digital payments over the past few years, there is
potential for further growth as cash continues on a significant scale. It is, therefore, important to boost
the adoption of digital payments, targeting untapped markets/ segments/ sectors.
3. In compliance with the Budget announcement (FY 2021-22) and to give further boost to digital
transactions in the country, it has been decided by the Government to incentivise the acquiring Banks
by way of paying percentage of value of RuPay Debit cards transactions (P2M) and low-value BHIM-
UPI transactions (upto ₹ 2,000) (P2M), for a period of one year w.e.f. April 01, 2021.
4. The incentive to the acquiring banks will be provided by the Government at the following rates:
RuPay Debit Card
Merchant Category Incentive rate per transaction
PoS and eCom transactions (other than Industry
0.40% capped at ₹ 100
Programmes)
PoS and eCom transactions (Industry Programmes*) 0.15% capped at ₹ 6
*Industry Programmes, i.e., Insurance, Mutual Fund, Government, Education, Railways, Agriculture,
Fuel, Jewellery and Hospital.
BHIM-UPI P2M Transactions (upto ₹ 2,000)
Merchant Category Incentive rate per transaction
Other than Industry Programmes 0.25%
Industry Programmes* 0.15%
* Industry Programmes, i.e., Insurance, Mutual fund, Government, Education, Railways, Agriculture,
1
Debt Collections, Fuel, Petroleum products, POI Funding transaction, Telecommunication, Utility
payments, Business/ Personal Services and Hospital.
i. To reduce the financial burden on the Government, lower incentive rate has been proposed on
transactions done at merchants under Industry Programmes, as mentioned above.
ii. MeitY, in consultation with NPCI, may review from time to time the utilization of funds under
the scheme and accordingly include/ exclude the Industry Programmes.
iii. The duration of the proposed scheme is one year, w.e.f. April 01, 2021.
iv. The estimated financial outlay of the scheme is ₹ 1,300 crore.
v. The allocation of ₹ 1,300 crore will be fungible between RuPay Debit cards and BHIM-UPI.
vi. The Banks are required to show at least 10% YOY growth rate in number of RuPay Debit card
transactions (overall, not restricted to P2M) and 50% YOY growth rate in number of BHIM-
UPI transactions (overall, not restricted to P2M) at the end of last quarter of the scheme.4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1]
vii. 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.
viii. MeitY will review the growth of RuPay Debit card (volume) and BHIM-UPI (volume)
transactions of each bank at the end of last quarter. The pending amount of the previous three
quarters (5% per quarter) would be released with the claimed amount of the last quarter, only if
the Bank meets the specified growth rate, as mentioned in Para vi. above, else the retained
amount, i.e., 5% per quarter of the previous three quarters and 5% of the claimed amount of the
last quarter will not be released to the Bank.
ix. 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.
x. The Scheme is applicable to the Banks having operations in India and transactions done in
India.
xi. The operational guideline for implementation of the scheme will be issued to the acquiring
banks by MeitY in consultation with NPCI.
Dr. RAJENDRA KUMAR, Addl. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.