Daijiworld Media Network- New Delhi

New Delhi, Mar 20: In a bid to further strengthen India’s digital payment ecosystem, the central government has approved an incentive scheme aimed at promoting low-value Unified Payments Interface (UPI) transactions.

The initiative seeks to encourage digital adoption, particularly among small vendors, daily wage earners, and users in rural areas. Under the scheme, banks and payment service providers will receive financial incentives for processing UPI transactions below a specified limit, ensuring a seamless and cost-effective digital payment experience.

With UPI emerging as a key driver of cashless transactions across the country, the government’s move is expected to enhance financial inclusion and reduce reliance on cash-based payments. The incentive structure and rollout details are likely to be announced in the coming days.

The scheme underscores the government’s commitment to fostering a robust digital economy, making digital payments more accessible and convenient for millions of users nationwide.