Commemorating the 126th birth anniversary of Dr. Bhim Rao Ambedkar, Prime Minister, Shri Narendra Modi will launch several crucial initiatives to further the digital payments revolution in India on April 14th this year.
Digital Payments | Highlights
- The initiatives include, the launch of BHIM Aadhaar platform for merchants, cash back and referral bonus schemes for BHIM and declaring about 75 townships going less-cash.
- PM will also felicitate the winners of the Mega draw of the two major incentive schemes to promote digital payments, viz. Lucky Grahak Yojana and Digidhan Vyapaar Yojana.
- These initiatives would further promote the digital movement that the country embarked upon and reinforce the vision of Baba Saheb for social empowerment of all through financial inclusion.
Digital Payments | Significance of BHIM App
- BHIM-Aadhaar, the merchant interface of the BHIM App, to be launched by the Prime Minister will pave the way for making digital payments by using the Aadhaar platform.
- This will enable every Indian citizen to pay digitally using their biometric data like their thumb imprint on a merchants’ biometric enabled device which could be smartphone having a biometric reader.
- Any citizen without access to smartphones, internet, debit or credit cards will be able to transact digitally through the BHIM Aadhaar platform, thus realizing Dr. Ambedkar’s vision of social and financial empowerment for all.
- Already, 27 major banks are now on board with 3 lakh merchants so that they can start accepting payments using BHIM Aadhaar.
Future initiatives –
- Further, the Prime Minister will launch two new incentive schemes for the BHIM – Cashback and Referral bonus – with an outlay of Rs. 495 crore for a period of six months. This is to ensure that the culture of digital payments permeates down to the grassroots.
- Under the Referral bonus scheme both the existing user who refers BHIM and the new user who adopts BHIM would get a cash bonus credited directly to their account. Under the Cashback scheme the merchants will get a cashback on every transaction using BHIM. Both schemes are to be administered by MEITY and implemented by NPCI.
Digital Payments | Conclusion
India’s digital prowess has been acknowledged by leading economists and to quote Raoul Pal, “India provides the ability to operate in the real time transactions such as lending, bank or mobile account that normally can take few days are now instant. The revolutionary digital infrastructure will soon be able to process billion more transactions than Bitcoins ever had.”