On Bhimrao Ambedkar’s birthday, on April 14, the government launched a series of incentives for consumers and merchants to popularize its main application using the latest digital payment option, United Payments Interface (UPI), BHIM from Government of India.
New incentives for traders:
The original incentives for using BHIM app was canceled within a few months. Some media have said that this is because people played the system to make money simply by sending money between them. However, the real reason was something different. The Ministry of Electronics and Information Technology does not have the money to continue paying the reimbursement, said a senior government official. The government believes that the incentives and rewards offered by traders can lead to greater use than peer payments using the digital payment option.
After distributing approximately INR 100 million to users of the BHIM application based on UPI as an incentive for money laundering, the government will direct advertising to buyers and encourage them to use the application more often.
The ministry is currently working on a revised program that will be aimed at sellers and merchants. It is not that the first time that an initiative has not succeeded in the first attempt. In April of this year, the government announced incentives to recover money to attract users and increase the use of the application, which grew very slowly compared to other applications based on UPI. The digital payment options of the BHIM app are also being tested.
The new application and digital payments option have brought many new people to UPI BHIM, although some of them only do so in exchange for the reimbursement. This time, the incentives will focus more on the merchants. The government believes that the incentives of economic operators can lead to greater use than mutual payments. To this end, they plan to raise 130-140 million rupees and run the program in the coming weeks. The government is still working on the details of the trader reimbursement system. After receiving the lessons, it will first obtain a budget of INR 130-140 million and then execute the program in the coming weeks.