1. The Union Cabinet approved an incentive scheme of ₹1,500 crore for UPI payments below ₹2,000 during 2024-25.
  2. Banks will get a 0.15% incentive for small merchant transactions, with a portion linked to infrastructure performance.
  3. No incentive will be provided for payments above ₹2,000, focusing support on low-value transactions.
  4. The aim is to promote UPI usage among small merchants since UPI does not charge merchant fees like cards.
  5. The government expects to reach ₹20,000 crore in total UPI transaction volumes in FY 2024-25.