The Union government has extended till March next year a cash back scheme that offers incentives of up to Rs 1,000 to merchants for accepting payments through the BHIM (Bharat Interface for Money) app. “The BHIM cash back scheme for merchants will be operational till March 31, 2018,” the Ministry of Electronics and Information Technology said in a notification.
The scheme was launched by Prime Minister Narendra Modi on April 14 this year for a period of six months for promoting usage of BHIM among merchants by incentivising its adoption and to encourage transactions via the BHIM mode. Under the scheme, a merchant can get cash back of Rs 50 for 20-50 transactions, and Rs 2 for every transaction thereafter till Rs 950. The monthly limit of BHIM cash back scheme is Rs 1,000, said a PTI report.
The condition for availing benefit is that at least 20 transactions should have been accepted by the merchant during the month from unique users of the BHIM with each amounting to minimum of Rs 25. The app user can make transaction by using UPI address, ISFC code and bank account of the recipient and by scanning QR code that can be generated in the app itself. Unlike mobile wallets, users are not required to store money in the BHIM app.
Besides announcing extension and modification in the BHIM Cashback Scheme for merchants, the government has also announced extension and modification in the BHIM Referral Bonus Scheme for individuals. In a press note, the Ministry of Electronics and Information Technology said that the BHIM Referral Bonus Scheme for individuals will be operational till 31st March 2018 with immediate effect. Also, the bonus will be paid to any new individual doing first three unique transactions of aggregated value of at least Rs 50 even without any referrer.