As apprised by the Ministry of Electronics and Information Technology (MeitY), Government of India has initiated incentive schemes such as BHIM cash-back scheme for individuals, BHIM incentive scheme for merchants, BHIM Aadhaar merchant incentive scheme for promotion and wider adoption of digital payment.

In order to promote digital payments, MeitY vide their notification dated 27th December, 2017 has allowed reimbursement of MDR charges on Debit cards/ BHIM-UPI and BHIM Aadhaar Pay transactions for value upto ₹ 2000, for two years effective from 1st Jan, 2018.

All public transport operators have been requested to enable National Common Mobilty Card (NCMC) for digital payments.

As per the Budget speech 2019-20, Hon’ble Finance Minister has, inter-alia, proposed that business establishments with annual turnover of more than ₹ 50 crore shall offer low cost digital modes of payment to their customers and no charges or Merchant Discount Rate shall be imposed on customers as well as merchants. RBI and Banks will absorb these costs from the savings that will accrue to them on account of handling less cash as people move to these digital modes of payment.

This was stated by Shri Anurag Thakur, Minister of State for Finance & Corporate Affairs in a written reply to a question in Lok Sabha.

Digital payments charge prohibition: businesses must provide low cost digital payment options without imposing merchant or customer fees. MeitY implements incentive schemes including BHIM cash back and merchant incentives and authorised reimbursement of Merchant Discount Rate on Debit Card, BHIM UPI and BHIM Aadhaar Pay transactions for amounts up to Rs. 2000 for two years from 1 January 2018; public transport operators were requested to enable the National Common Mobility Card. The Budget proposal directs larger business establishments to offer low cost digital payment modes without levying charges or MDR on customers or merchants, with RBI and banks expected to absorb costs from cash handling savings.