Incentive Scheme 2023: Know Benefit & It’s Objectives

Incentive Scheme
Share with Others

Incentive Scheme Upsc | UPI 123Pay upsc

The Government of India is Taking Major Steps toward the Development of the Country and Its Citizens. The Government of India under Prime Minister Narendra Modi is Promoting Digital Payments since Last Year. Focussing the Digital Payment, Union Cabinet Chaired by Prime Minister Narendra Modi has approved a Scheme named Incentive Scheme to Promote the use of RuPay Debit Cards and Low-Value BHIM-UPI Transactions which means Person to merchant transactions. Today we are going to talk about the Incentive Scheme Benefits and Its Effect on The Indian Citizen.

What is the Incentive Scheme?

The government of India launched the Incentive Scheme on 11 January 2023 during the Union Cabinet meeting chaired by the Prime minister of India Shri Narendra Modi Ji. Under this Scheme, the Promotion of RuPay Debit Cards and Low Valued BHIP-UPI Transaction (P2M) will be done for the financial Year 2022-23. The Government has issued a financial Outlay of Rs. 2,600 crores for the promotion. Under this Scheme, acquiring banks will be provided with financial incentives for promoting the Point of Sale and e-commerce transactions using RuPay cards and BHIM UPI for the Current Financial year 2022-23. 

The Government of India is taking various initiatives For the Promotion of Digital Payments across the Country. Over the past 8 years, Digital Payments Have witnessed Tremendous growth since the launch of the Digital India Initiative. UPI has Achieved a Record of 782.9 crores of Digital Payments transactions with a value of Rs. 12.82 lakh crore in December 2022, which is approximately equal to 54% of the Indian GDP. 

Objectives of the Incentive Scheme 2023

  • To promote Digital Payments at every level of the Indian Economy.
  • To promote the use of RuPay Debit Cards for Transactions in business, Person to person, and Online Payments. 
  • To provide an Incentive to the Acquired Bank for promoting the Use of BHIM-UPI And Rupay Cards.
  • To promote Faster Migration from cash Payments to Digital Payments.
  •  To continue providing Financial Support for Digital Payments

Benefits of The Incentive Scheme

  • The Government of India is building a Robust Digital Payment Ecosystem. 
  • Promotion of UPI Lite and UPI 123PAY as economical and User-Friendly Digital Payments.
  • Digital Payments will bring Efficiency and affordability among Indian citizens for cashless Transactions.
  • Digital Payments will reduce the Chance of Money Lost in the form of Cash.

Key Highlights

Scheme Name Incentive Scheme
Launched ByPM Narendra Modi 
DepartmentDepartment of Finance 
Category Central Government Schemes 
Beneficiaries Citizens of India
Official Website Click Here

The Incentive Scheme will facilitate a robust digital payment ecosystem and promote Rupay Debit Card and BHIP UPI digital Transactions. Protsahan Yojana with the objective of Sabka Sath Sabka Vikas, the Scheme will also promote UPI Lite and UPI 123PAY as economical and User-Friendly Digital Payments solutions and will enable the further promotion of Digital Payments in the Country across all Sectors, Merchants, and Segments of The Population. 

What is UPI 123PAY?

National Payments Corporation of India (NPCI) Launched a new version of UPI Payments that is UPI 123PAY, Under this Initiative, Usse who don’t have Smartphones or the internet can use this Service for making payments Using UPI without the internet safely and Securely. 

What is UPI Lite?

UPI Lite is a service provider by the NPCI. This service is For those transactions whose value is below 200 Rupees. This is a Wallet-based Service issued by the respective banks for the Low-Value Transaction. 

What are Low-Value Transactions?

These Transactions are carried out By the Person who is buying something from a Merchant. These transactions are low in number up to 1000 Rupees carried out between a person And Merchant.

What is The Incentive Scheme?

The government of India has launched the Incentive Scheme for the Promotion of the Use of RuPay cards and Low-Value Transactions between Persons and Merchants.

Share with Others

Discover more from Kendra Yojna

Subscribe to get the latest posts to your email.

Leave a Reply