Tribune News Service
New Delhi, February 1
To boost digital financial transactions, the government has allocated Rs 1,500 crore for a scheme that will provide financial incentive to promote digital modes of payment. Finance Minister Nirmala Sitharaman informed the House that there had been manifold increase in digital payments in the recent past and there was a need to take steps to carry forward this momentum.
The industry believes that the move will drive adoption of e-payments in smaller cities and spur innovation by fintech firms.
Payments Council of India chairman Vishwas Patel said the announcement would incentivise digital payments.
“Hopefully, it will be used to reimburse losses suffered by payment service providers for processing RuPay debit cards and UPI transactions for free in 2020 as well as top up the Rs 500 crore fund set up by the RBI as part PIDF,” he said.