This Independence Day, the Bharatiya Janata Party (BJP) government is planning to offer higher cashbacks to people who’ll opt for digital transactions using the Bhim app. Operated by the National Payments Corporation of India (NPCI), the Bhim app works on the United Payments Interface (UPI).
It was launched in December by Prime Minister Narendra Modi to boost digital payments after demonetisation. According to a Times of India report, the proposed approval of increased cashback incentives by the government for Bhim usage is expected to come into effect by August 15. This also coincides with the planned rollout of a new version of Bhim.
“We have communicated to the government that the cashback incentives need to be increased so that more people will start using it. We are waiting for the approval from the government which is expected by August 15,” said an official, according to the TOI report.
The push for higher incentives for Bhim users also comes on the back of other payment apps in the country offering cashback incentives aggressively for customer acquisition and repeat transactions.
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Earlier, it was reported that banks may cut UPI charges for merchants in a move aimed at proping up the number of transactions made through UPI. After demonetisation, the government had allocated over Rs 450 crore for cashback incentives to be used for a period of six months starting April 14. The payments app recently crossed a user base of 16 million with 4 million active customers at the end of June.
Now the government is planning to launch version 1.4 of Bhim, which will make transactions smoother on the app. Among other updates, Bharat quick response (QR) code will be integrated into the app which should be another booster for increasing transactions on Bhim.