UPI Payment Incentive: To encourage digital payments across India, the National Payments Corporation of India (NPCI) has introduced a special initiative called the ‘UPI Vyapar Saksham’ scheme. The programme aims to bring more small businesses, shopkeepers and street vendors into the digital payment network, particularly in smaller towns and rural areas.
Under this initiative, eligible shopkeepers can receive financial incentives for installing UPI QR codes and soundboxes. Merchants installing a UPI QR code for the first time can get ₹300, while those installing a soundbox to receive audio payment confirmations can qualify for an incentive of ₹750.
The scheme also includes incentives linked to UPI transactions exceeding ₹2,000. The initiative is designed to make digital payment facilities more accessible to businesses that have not yet fully adopted cashless transactions.
Who Is Eligible for the NPCI UPI Incentive Scheme?
The UPI Vyapar Saksham scheme primarily focuses on small and medium-sized merchants. Businesses with an annual turnover of up to ₹40 lakh are eligible to participate under the specified conditions.
The initiative aims to expand digital payment adoption in Tier-3 to Tier-6 cities, where many small businesses are still transitioning towards digital transactions.
Special attention will also be given to merchants operating in the Northeastern states, Jammu and Kashmir, and Ladakh. Small retail shops, local traders and street vendors are among the businesses that could benefit from the programme.
How Much Incentive Can Shopkeepers Receive?
According to the NPCI notification, eligible merchants can receive the following incentives:
- ₹300: For installing a UPI QR code for the first time.
- ₹750: For installing a soundbox that provides audio confirmation of successful payments.
In addition, incentives are linked to UPI transactions exceeding ₹2,000. These benefits are intended to encourage merchants to adopt digital payment facilities and increase transaction activity.
How Long Will the UPI Vyapar Saksham Scheme Continue?
The scheme is scheduled to remain operational for three years from the implementation date of the Merchant Discount Rate (MDR) framework.
To finance the initiative, 5% of the MDR share generated through UPI transactions will be contributed to a dedicated fund. NPCI has outlined the following allocation of the available funds:
- 30% will support the onboarding of new merchants.
- 50% will be used to encourage higher UPI transaction volumes.
- 20% will be directed towards development in the identified focus regions.
Through this funding arrangement, NPCI aims to increase the number of merchants accepting UPI payments and strengthen India’s digital payment ecosystem, particularly in underserved areas.
Disclaimer
This article is based on the information provided about the NPCI UPI Vyapar Saksham scheme. Incentive amounts, eligibility requirements and implementation dates are subject to official NPCI guidelines. Merchants should check the latest notification and applicable terms before applying or expecting any financial benefit.