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The Union Cabinet on Wednesday (March 19, 2025) approved an incentives scheme worth approximately ₹1,500 crore to promote UPI transactions below ₹2,000 for 2024-25, an official statement said.
Under the scheme, the government will bear MDR (Merchant Discount Rate) expense for payment of less than ₹2,000 made by a person to a merchant.
“The Union Cabinet chaired by Prime Minister Narendra Modi today approved the ‘Incentive Scheme for promotion of low-value BHIM-UPI transactions Person to Merchant (P2M)’ for the financial year 2024-25,” the statement said.
The incentive scheme for the promotion of low-value BHIM-UPI transactions (P2M) will be implemented at an estimated outlay of 1,500 crore from April 1, 2024, to March 31, 2025.
Only the UPI (P2M) transactions of up to ₹2,000 for small merchants are covered under the scheme.
“Incentive at the rate of 0.15% per transaction value will be provided for transactions up to ₹2,000 pertaining to the category of small merchants,” the statement said.
Published – March 19, 2025 05:21 pm IST
