Twitter
Advertisement

Government slashes cashback incentives on UPI transactions; limits to Rs 150 per person

A notification in this regard is set to come out in a couple of days which will make it clear that the Ministry of Electronics and Information Technology is looking to limit the outflow through this cashback scheme.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

The Centre is planning to limit the incentives available to Unified Payments Interface from Rs 750 per month to Rs 150 per month.

According to a Business Standard report, the move is aimed in a bid to ensure that public money isn’t wasted with people ‘gaming the system.’

A notification in this regard is set to come out in a couple of days which will make it clear that the Ministry of Electronics and Information Technology is looking to limit the outflow through this cashback scheme.

The move comes after a number of people tried making a quick buck by downloading multiple bank apps and forming WhatsApp groups to get new people to transfer money in order to make Rs 750 per month. There were blog posts and YouTube videos giving live demos of the same.

The BHIM app was launched in 2016 to carry out cashless payments. The BHIM app uses the Unified Payments Interface (UPI) technology, launched in India in April 2016. It’s a system that allows users to transact from accounts in various banks through one single app, even offering the possibility to shop in retail stores.

BHIM app, developed by NPCI, is available in more than 12 Indian languages and is based on a Unified Payments Interface (UPI). One can use BHIM app even without an internet facility. Since the launch of the app in December 2016, various measures have been taken by the government to boost the usage of digital payment methods including cashback for users and incentives for merchants.

Also, there is no need to download multiple mobile applications from various banks as the BHIM app come work for all banks. As many as 97 banks are live with UPI.

After the demonetisation move, the digital payments across the country have increased significantly.

According to data from NPCI, for the month of April this year, the total number of financial transactions through stood at 190 million while the value of these transactions amounted to Rs 27,020 crore.

BHIM app accounted for 12.6 million financial transactions while the value of these transactions amounted to Rs 4,973 crore.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
    Advertisement

    Live tv

    Advertisement
    Advertisement