UPI Promotion Incentive: Who Qualifies and What You Get

This scheme provides financial reimbursement for specific transaction costs incurred when you accept digital payments via UPI.

👤Who it's for

This incentive is specifically designed for small merchants who accept digital payments. If you run a small retail outlet or a local shop and use digital payment methods to receive money from customers, you may qualify for this support.

🎁What you get

The primary benefit of this scheme is the reimbursement of MDR charges on your UPI transactions. MDR stands for Merchant Discount Rate, which is the fee that a merchant must pay to a bank or a payment service provider to facilitate a digital transaction. By receiving these reimbursements, small businesses can reduce the overhead costs associated with moving away from cash and adopting modern digital payment systems.

💰What it costs you

There is no direct application fee or monetary cost required to participate in this scheme. However, to be eligible for the reimbursement of these charges, you must maintain an active merchant QR code account. This account allows customers to scan your code to pay you instantly via UPI.

⚠️The catch to know

The most important thing to remember is that this scheme is often routed through banks rather than being paid directly by a central government office. Because the incentive is managed through banking channels, it is your responsibility to check with your merchant bank to understand the specific mechanics of how the reimbursement is applied to your account.

📝How to apply

1. Ensure you have a functional and active merchant QR code account set up for your business.
2. Contact your merchant bank or the financial institution that manages your digital payment services.
3. Ask your bank representative specifically about the process for receiving MDR charge reimbursements under the UPI Promotion Incentive.
4. Follow the specific documentation or verification steps requested by your bank to finalize the setup.