New Delhi, Dec 15 (IANS): An incentive scheme to promote RuPayDebit cards and low-value upto Rs 2,000 BHIM-UPI transactions -- Person-to-Merchant (P2M)-- in the country was approved by Cabinet on Wednesday.

Under the scheme, the acquiring banks will be incentivised by the Government, by way of paying percentage of value of transactions (P2M) done through RuPay Debit cards and low-value BHIM-UPI modes of payments, at an estimated financial outlay of Rs 1,300 crore for a period of one year with effective from April 1, 2021.

This scheme will facilitate acquiring Banks in building a robust digital payment ecosystem and promoting RuPay Debit card and BHIM-UPI digital transactions, across all sectors and segments of the population and further deepening of digital payments in the country.

It will also help in making accessible digital modes of payments to unbanked and marginalised populations, who are outside of the formal banking and financial system.

India today is one of the most efficient payments markets in the world. These developments have been the outcome of the initiatives of the initiatives of the government of India and innovation by various players in the digital payment ecosystem.

The scheme will further spur research and development and innovation in the fintech space, and will help the government in further deepening digital payments in various parts of countries.

The scheme has been formulated in compliance with the Budget announcements of the financial year 2021-22 by the government to give further boost to digital transactions in the country.