The government has extended the cash back scheme, that offers incentives of up to Rs 1,000 to merchants for accepting payments through the BHIM (Bharat Interface for Money) application, to 31 March.
"The BHIM cash back scheme for merchants will be operational till 31 March, 2018," a note by Ministry of Electronics and IT said.
The scheme was launched by Prime Minister Narendra Modi on 14 April for a period of six months for promoting cashless payments through the BHIM app.
Under the scheme, a merchant can get cash back of Rs 50 for 20-50 transaction, Rs 2 for every transaction thereafter till Rs 950. The monthly limit of BHIM cash back scheme is Rs 1,000.
The condition for availing benefit is that at least 20 transactions should have been accepted by the merchant during the month from unique users of the BHIM with each amounting to minimum of Rs 25.
The app user can make a transaction by using UPI address, ISFC code, and bank account of the recipient and by scanning QR code that can be generated in the app itself. Unlike mobile wallet, users are not required to store money in the BHIM app.
Launched in 2016, the BHIM app, the cashless payment system came after the 8 November's demonetisation scheme introduced by Prime Minister Narendra Modi.
According to earlier reports, the application is simpler to use than mobile wallets, the transactions take place directly with the bank account. As per the latest reports by the National Payments Corporation of India (NPCI), it has crossed 16 million installs and has four million active users.
Published Date: Aug 21, 2017 01:07 pm | Updated Date: Aug 21, 2017 01:07 pm