The cabinet has authorized a proposal to provide incentives to boost small-dollar digital transactions via RuPay Debit Card and BHIM UPI. The scheme will cost roughly Rs 1,300 crore, according to Union Minister Anurag Thakur, who briefed the press on December 15.
IT Minister Ashwini Vaishnav elaborated on the idea, saying that the government will recover transaction fees charged on digital payments made by individuals to merchants as part of the merchant discount rate (MDR).
“Over the next year,” Vaishnaw stated, “the government would invest roughly Rs 1,300 crore so that more and more people move to digital payments.” In November, he added, 423 crore digital transactions worth Rs 7.56 lakh crore took conducted.
According to Vaishnaw, India recorded a record amount of digital transactions in November, with 423 crore transactions valued at 7.56 lakh crore (almost $100 billion).
India has accepted this degree of digital payments, and today’s Cabinet decision would speed adoption even more, he added.
This plan will assist acquiring banks in developing a strong digital payment ecosystem and promoting RuPay Debit card and BHIM-UPI digital transactions across all sectors and segments of the population, as well as deepening the country’s digital payment infrastructure.
It will also assist in making digital means of payment more accessible to unbanked and marginalised communities who are not part of the official banking and financial system.
In addition, the Cabinet approved the production-linked incentive scheme (PLI) for semiconductors, with the goal of making the country an electronics centre as a result of the shortage of microchips.
“An ambitious proposal to create a complete semiconductor and display manufacturing ecosystem has been approved. In 6 years, Rs 76,000 crores will be invested on this project “, said Union Minister Anurag Thakur during a news conference. The Cabinet also approved the implementation of the Pradhan Mantri Krishi Sinchayee Yojana for the years 2021-2026. Around 22 lakh farmers are expected to gain from the scheme, including 2.5 lakh SC and 2 lakh ST farmers.