To promote the use of BHIM app for cashless transactions, last year, the government introduced cashback schemes. However, to ensure that people don t end up gaming the system and waste public money, the government has decided to limit the cashback incentives on UPI transactions. Also Read - OnePlus Nord open sale from today midnight: Price, offers, specifications and moreAlso Read - Sony WF-1000XM3 true wireless earphones now launched in India at Rs 19,990
Until now, the government used to offer up to Rs 750 a month as incentives. With the new change, the limit is now capped at Rs 150 per person in the full cycle, Business Standard reports. Reliable sources have also told the publication that a notification about the same will also be sent out in a couple of days. Also Read - Amazfit PowerBuds TWS to launch on Amazon India for Rs 6,999: Check sale details
Watch: How to use BHIM app
What is important to note here is the fact that the benefits of the cashback scheme was extended to people transacting on other banks UPI apps too. By transferring funds to unique users, people could easily make up to Rs 750, while gaming the system. There have been some YouTube videos and blog posts offering tutorials on how to earn free money with UPI transactions.
We are worried about people downloading and not using it but getting incentives so we want to modify it for merchants. We want to minimize users and continue the schemes in person to person transfer, an official told the publication on the condition of anonymity. He also mentioned that the government has already spent Rs 1 billion in the past three months on the cashback schemes.
With an aim to develop new incentive structure for merchants, government completely stopped the incentive scheme. Merchant transactions didn t take off as much as person to person money transfer. Merchants are important to develop the ecosystem. If a merchant starts insisting on BHIM, then they will also benefit, the publication added.
Meity is said to be planning on proposing a bigger incentive scheme for merchants, but banks are yet to approve it. Once the approval is in place, the ministry will have to demand funds from the expenditure department, followed by budgetary allocations before launching the scheme.