Govt clears ₹1,500 cr scheme to boost low-value BHIM-UPI transactions

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved an incentive scheme for the promotion of low-value BHIM-UPI transactions (person to merchant – P2M) for financial year 2024-25, with an estimated outlay of ₹1,500 crore.

Under the scheme, incentives will be provided for UPI transactions up to ₹2,000, specifically benefitting small merchants. The government aims to increase digital payments penetration while minimising financial burden on merchants and consumers.