Modi government's big decision on small digital payments, how will it affect you; understand

New Delhi (Uttam Hindu News): The Modi government at the Center has taken an important step to promote small digital transactions. The Union Cabinet on Wednesday approved an incentive scheme of ₹ 1,500 crore for the financial year 2024-25. The scheme will especially benefit small merchants and aims to increase the reach of digital payments. According to a statement issued by the Cabinet, 'Person to Merchant (P2M) Incentive Scheme for Promoting Low Value BHIM-UPI Transactions' will be implemented at an estimated cost of ₹1,500 crore. Under this scheme, UPI transactions up to ₹2,000 for small merchants only are covered.

The government will provide incentives at the rate of 0.15 per cent on every transaction up to ₹2,000 belonging to the small merchants category. The main goal of this initiative is to promote widespread adoption of digital payments while reducing the financial burden on merchants and consumers. The Union Cabinet believes that this incentive scheme will encourage small businesses to transact through digital payments, bringing transparency and efficiency to the economy. This move will further strengthen the government's Digital India campaign.