Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-21032025-261837
EXTRAORDINARY
PART I-Section 1
PUBLISHED BY AUTHORITY
No. 84]
NEW DELHI, FRIDAY, MARCH 21, 2025/PHALGUNA 30, 1946
MINISTRY OF FINANCE
(Department of Financial Services )
NOTIFICATION
New Delhi, the 21st March, 2025
Subject: Incentive scheme for promotion of low-value BHIM-UPI transactions (Person to Merchant) for financial
year 2024-25
F. No. 5/11/2024-DP-DFS.—1. The Government has been taking up various initiatives to promote digital
payments in the country. Over the past few years, digital payment transactions have witnessed tremendous growth
across the country with the number of transactions growing from 2,071 Crore in financial year 2017-18 to 18,737 Crore
in financial year 2023-24.
2.
Although there has been an unprecedented growth in digital payments over the past few years, there is potential
for further growth. It is, therefore, important to promote the adoption of digital payments, targeting untapped areas or
segments or sectors.
3.
To give further boost to digital payments in the country, it has been decided by the Government to implement
“Incentive scheme for promotion of low-value BHIM-UPI transactions (Person to Merchant) for financial year
2024-25". The scheme will incentivize the banks, other payment system operators and app service providers promoting
low-value BHIM-UPI transactions. It will specifically benefit the small merchants as they continue to avail Unified
Payment Interface (UPI) services. The common citizens will be benefitted with seamless and round-the-clock UPI
services without any additional cost.
4.
The broad contours of the scheme are as follows-
4.1 The incentive scheme for promotion of low-value BHIM-UPI transactions (P2M) will be implemented at an
estimated outlay of 1,500 Crore.
4.2 The period of implementation of the scheme will be one year from the 1st April, 2024 to 31st March, 2025.
4.3 Only the UPI (P2M) transactions upto 2,000 /- for Small Merchants are covered under the scheme.
4.4 Incentive at the rate of 0.15 percent per transaction will be provided for transactions upto 2,000 pertaining
to category of small merchants.
(Note: Small Merchants- with turnover upto 20 lakh during the previous financial year, as defined by RBI in
its notification number RBI/2017-18/105 DPSS.CO.PD No. 1633/02.14.003/2017-18 dated 07th
December, 2017)
4.5
DFS, in consultation with the Financial Advisor (DFS) and NPCI, may review from time to time the
utilisation of funds under the scheme and, accordingly, make changes in the scheme, if required.
4.6 Disbursement of claims submitted by banks will be made on a quarterly basis, to the following extent:
(a) For all the quarters of the scheme, 80 percent of the admitted claim amount by the acquiring banks
will be disbursed without any conditions.
(b) The disbursement of the remaining 20 percent of the admitted claim amount for each quarter will be
contingent upon fulfilment of the conditions in sub-clause (i) and (ii).
(i) 10 percent of the admitted claim will be provided only when the technical decline of the
acquiring bank is less than 0.75 percent.
(ii) The remaining 10 percent of the admitted claim will be provided only when the system uptime
of the acquiring bank will be greater than 99.5 percent.
4.7
DFS, in consultation with NPCI, will issue operational guidelines for implementation of the scheme,
including the incentive sharing mechanism among the ecosystem partners.
4.8 The Scheme shall be applicable to the banks having operations in India and transactions done in India.
ABHIJIT PHUKON, Jt. Secy.