New Delhi [India], November 12 (ANI): The National Payments Corporation of India (NPCI) has introduced the 'UPI Vyapaar Saksham Scheme' to expand Unified Payments Interface (UPI) acceptance infrastructure among small merchants, offering incentives of Rs 300 per physical QR code and Rs 750 per soundbox deployed under the scheme, subject to eligibility conditions.
In a circular dated November 11, NPCI said the initiative aims to facilitate the onboarding of new small merchants and promote sustained growth in UPI transactions, particularly in smaller towns and underserved regions.
The scheme will focus on Tier 3 to Tier 6 centres, North-Eastern states, the Union Territories of Jammu and Kashmir and Ladakh, and eligible merchants covered under notified Central Government schemes.
"NPCI hereby introduces the 'UPI Vyapaar Saksham Scheme' to expand UPI acceptance infrastructure, facilitate the onboarding of new small merchants and promote sustained growth in UPI transactions," the circular stated.
According to the circular, the scheme provides for the deployment of UPI acceptance infrastructure, including physical QR codes and soundboxes, alongside transaction-linked incentives aimed at encouraging sustained usage and transaction growth.
The incentive framework comprises three components: new merchant onboarding, transaction growth and incremental growth, with fund allocations of 30 per cent, 50 per cent and 20 per cent, respectively.
Under Component A, which focuses on new merchant onboarding, the scheme provides an incentive of Rs 300 per QR code and Rs 750 per soundbox.
To qualify, merchants must record at least 25 eligible transactions in two out of three months, with a minimum monthly transaction value of Rs 5,000. The eligibility criteria also require merchants to fall within the targeted geographies or be covered under notified Central Government schemes.
Component B, accounting for 50 per cent of the incentive fund, seeks to encourage transaction growth by linking incentives to quarterly increases in eligible UPI transaction volumes.
Under this component, a minimum quarter-on-quarter growth of 5 per cent in eligible transaction volume is required to qualify for incentives.
The incentive has been fixed at 0.03 per cent of the aggregate eligible transaction value, with an additional 50 per cent incentive for targeted geographies, according to the circular.
Meanwhile, Component C, which accounts for the remaining 20 per cent of the fund, aims to promote incremental transaction growth in targeted geographies.
Under this component, incentives will be calculated at 0.20 per cent of the incremental value of eligible transactions compared with the previous quarter, over and above the incentives available under Component B.
The scheme's structure combines incentives for expanding payment acceptance infrastructure with rewards linked to transaction activity, seeking to encourage both the onboarding of new merchants and continued use of UPI for digital payments. (ANI)
NPCI introduces UPI Vyapaar Saksham Scheme to boost digital payments among small merchants, offers incentives for QR codes and soundboxes
