Now, a double benefit on digital payments! A new scheme from the NPCI for small and medium-sized shopkeepers.

The National Payments Corporation of India (NPCI) has launched the ‘UPI Vyapaar Saksham Scheme’ to expand the infrastructure for Unified Payments Interface (UPI) adoption among small merchants. Under this scheme, upon meeting the eligibility criteria, an incentive of ₹300 will be provided for each physical QR code, and ₹750 for each soundbox. In a circular issued on November 11, the NPCI stated that the initiative aims to onboard new small merchants onto the UPI platform and foster sustained growth in UPI transactions—particularly in smaller towns and regions where UPI penetration remains low. The scheme will focus on Tier 3 to Tier 6 centers, the Northeastern states, the Union Territories of Jammu & Kashmir and Ladakh, as well as eligible merchants covered under various central government-notified schemes.

Circular Issued
The circular notes that the NPCI has introduced the ‘UPI Vyapaar Saksham Scheme’ to expand UPI-acceptance infrastructure, onboard new small merchants, and drive consistent growth in UPI transactions. According to the circular, the scheme involves the deployment of UPI-acceptance infrastructure (such as physical QR codes and soundboxes). Additionally, transaction-based incentives will be offered to encourage regular usage and an increase in transaction volumes. The incentive framework consists of three components: onboarding new merchants, driving transaction growth, and achieving incremental growth. The fund allocation for these components is 30 percent, 50 percent, and 20 percent, respectively.

Incentive Details
Under the first component (Component A), which focuses on onboarding new merchants, an incentive of ₹300 per physical QR code and ₹750 per soundbox will be provided. To be eligible, merchants must complete at least 25 qualifying transactions in at least two out of the three months, with a total transaction value of at least ₹5,000 per month. According to the eligibility criteria, merchants must also be located in targeted geographical areas or fall under schemes notified by the Central Government.

Fifty percent of the incentive fund is allocated to the second component (Component B). Its objective is to encourage an increase in transaction activity; therefore, the incentive is linked to the growth in the volume of qualifying UPI transactions each quarter. Under this component, a minimum quarterly growth of 5 percent in the volume of qualifying transactions is required to qualify for the incentive. As per the circular, the incentive amount is set at 0.03 percent of the total value of qualifying transactions, with an additional 50 percent incentive provided for transactions in targeted geographical areas.

Meanwhile, ‘Component C’—which covers the remaining 20 percent of the fund—aims to foster further growth in transactions within the targeted areas. Under this component, the incentive is calculated based on 0.20 percent of the incremental value of qualifying transactions compared to the previous quarter. This amount is in addition to the incentive received under ‘Component B.’ The framework of this scheme includes both incentives for expanding payment acceptance infrastructure and rewards linked to transaction activity. Its goal is to onboard new merchants and promote the sustained use of UPI for digital payments.

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