Big boost for UPI users: Incentives announced for payments up to Rs 2,000

The central government has taken a major decision to increase UPI transactions in business.

UPI Payment Incentive:

This time, the Union Cabinet has decided to give incentives to small businesses. The government has approved ₹1500 crore for this. Generally, the cashback aspect of UPI transactions is known to everyone (UPI payment limit per day).

However, this time, the government will not only give cashback but also incentives

On Wednesday, the Union Cabinet took a big decision regarding UPI payments. It is known that an incentive will be given on transactions of ₹2,000.

In the current financial year, small businesses will get 0.15% incentive on ₹2000

The central government has announced that under this scheme, if a person sends up to ₹2,000 (Person to Merchant) to a business via UPI, an incentive of 0.15% will be given on the transaction (UPI Payment Guidelines).

However, only small businesses will get this benefit. Big businesses will not get the benefit of this incentive in any way.

Also, a zero merchant discount rate (MDR) is being maintained for all transactions which will ensure free digital transactions.

If a customer makes a purchase of ₹2000 or less. And if they transact through UPI, then the small business will get an incentive of ₹1.5 per transaction (UPI payment incentive).

On the other hand, banks will also receive this allowance. It is known that this decision has been taken with the aim of encouraging digital payments and strengthening the cashless economy.

According to the government, UPI is the easiest way for shopkeepers now

It can be said that it is a safe and fastest payment method. Through which, the money goes directly to the bank account.

Meanwhile, this facility will be available in UPI service without any extra cost

A record of digital transactions will be created. As a result, it will be easier to get loans. Customers will get extra benefits and no extra charges will be taken for it.