In an effort to boost digital payments, the Union Cabinet has decided to waive the merchant discount rate (MDR) applicable on all debit cards, BHIM and UPI transactions up to Rs 2,000.
With this, the users will be able to create their own Paytm BHIM UPI ID on the app, which will be issued by Paytm Payments Bank.
"The BHIM cash back scheme for merchants will be operational till March 31, 2018," a note by Ministry of Electronics and IT said.
The transactions pertain to all types of payments handled by NPCI - from cheque and ATM clearing to IMPS, UPI, BHIM, RuPay, POS, e-commerce and also Aadhaar-based payments. Currently, the NPCI operates 12 payment systems.
Responding to a mention made by SP member Jaya Bachchan during the Zero Hour in the House, Prasad also said more than 2 crore people have been trained by common service centres on digital payements.
The handset 'K9 Kavach 4G' is priced at Rs 5,290 and is available both via online and offline sales channels.
UPI is a system that brings multiple banks onto a single mobile application, merging several banking features, seamless fund routeing and merchant payments.
Both Apps uses Unified Payments Interface (UPI) technology to transfer money between any two individuals and between an individual and a merchant.
"Friends, the government of India has provided you a good opportunity. The new generation is almost getting free of cash transactions. The new generation does not need cash. The new generation believes in digital payments," Modi said in his monthly radio programme 'Mann Ki Baat'.
According to R Gandhi, recently retired as the Reserve Bank of India’s Deputy Governor said, "Right now we are trying to do all things including Aadhaar Pay, UPI, BHIM and simultaneously trying to work on MDR (merchant discount rates) on card payments."
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Aadhaar enabled payment system has made digital payments possible for even those who do not have mobile phones.
BJYM activists, led by their chief Poonam Mahajan, today launched a week-long campaign to popularise the BHIM application by helping policemen download the e-payment app.
Cyber security firm FireEye said the apps were infected with malware that could allow hackers to steal user credentials.
Transactions done through the Unified Payments Interface (UPI) have seen a massive jump, in what would be a boost to Prime Minister Narendra Modi’s push towards digital payment.
Facebook-owned messaging app WhatsApp could soon make a foray into digital payment services starting with India and is looking to hire a digital transactions head for the country.
A WhatsApp move into digital payments in India, its biggest market that is home to 200 million of its billion plus global users, would replicate similar moves by messaging apps like Tencent Holdings Ltd's WeChat in China.
As customers reduce their dependence on banks for their financial needs, fintech firms are spreading their focus to a wide range of products.
IT Secretary Aruna Sundarajan said the government was looking to rationalise charges on digital transactions as part of its push for a less-cash economy.
Indigenous digital payments app BHIM, launched by the central government last December for fast and secure cashless transactions, has recorded 18 million downloads so far, Niti Aayog CEO Amitabh Kant today said.
Latest RBI data suggest that measures implemented to push digital transactions haven’t been able wane citizens off the “touch and feel” of cash.
Cyber security has become a hot-button topic particularly after demonetisation gave a huge filip to digital payments. However, banks have still not put in adequate security measures to prevent cyber fraud.