UPI Vyapaar Saksham Scheme: Shopkeepers accepting UPI payments will receive an incentive ranging from ₹300 to ₹700..

The National Payments Corporation of India (NPCI) has launched a major initiative to expand digital payments into small towns and villages across the country. The NPCI has introduced the 'UPI Vyapaar Saksham Scheme' (UPI Business Enablement Scheme) for small shopkeepers and merchants. Under this scheme, merchants will receive an incentive ranging from ₹300 to ₹750 for installing UPI QR codes and soundboxes at their shops.

The NPCI has issued a circular regarding the UPI Vyapaar Saksham Scheme. According to the circular, an incentive of ₹300 will be provided when a UPI QR code is installed for the first time at a merchant's shop. Additionally, if a merchant installs a soundbox for payment alerts, they will receive an incentive of ₹750. Furthermore, incentives will also be provided for eligible UPI transactions of up to ₹2,000. This scheme will remain in effect for three years from the date of implementation of the UPI Merchant Discount Rate (MDR).

Who can avail the benefits of the UPI Vyapaar Saksham Scheme?

The primary objective of the UPI Vyapaar Saksham Scheme is to bring small and medium-sized businesses into the digital payment ecosystem. According to the scheme's guidelines, all small merchants with an annual turnover of up to ₹40 lakh are eligible. This means that millions of grocery stores, street vendors, and small retail shopkeepers across the country will be able to directly benefit from this initiative.

The NPCI has designed this scheme to promote digital payments even in the country's remote areas. Special focus will be placed on small towns, ranging from Tier-3 to Tier-6 categories. Additionally, a key goal is to onboard merchants in challenging regions—such as the North-Eastern states, Jammu & Kashmir, and Ladakh—onto the UPI platform.

How long will the scheme continue? This scheme will remain in effect for three years from the date the UPI Merchant Discount Rate (MDR) comes into force. A funding model has also been established to support the implementation of this scheme. Specifically, 5% of the Merchant Discount Rate (MDR) share collected by members of the UPI ecosystem will be contributed to the fund for this UPI-enabled initiative. Of the total fund, 30% will be allocated toward onboarding new merchants, 50% toward increasing the volume of transactions, and the remaining 20% ​​toward fostering growth in targeted (focused) areas.

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