MeitY to allow repeat transactions on BHIM to be eligible for cashback

In the earlier BHIM cashback scheme, merchants were eligible for cashback of up to Rs 1,000 in a month for 20 unique transactions

As it looks to promote the use of Bharat Interface for Money (BHIM) app for making digital payments, the Ministry of Electronics and Information Technology (MeitY) is soon going to revise the cashback scheme for merchants, allowing repeat transactions to be eligible for cashback.

In the earlier BHIM cashback scheme, which has since been discontinued, merchants were eligible for cashback of up to Rs 1,000 in a month for 20 unique transactions. Since getting 20 unique transactions every month for any merchant was an onerous task, the scheme did not achieve the desired response.

“Since the cashback in the earlier scheme was restricted to unique transactions, most of the smaller merchants did not receive the benefits. That is why the scheme was withdrawn from July 1,” an official in the MeitY told Business Standard.

The official further said the ministry was working on a revised format for the scheme, wherein repeat customers or transactions would be eligible for cashback. The number of transactions and the maximum amount which may be claimed by the merchants have not been decided.

The MeitY in June last year had notified a cashback scheme to promote the use of the BHIM app among merchants by incentivising its adoption and encouraging transactions via this mode. A merchant was eligible for cashback of Rs 1,000 every month. But to avail of the cashback, a minimum of 20 unique transactions had to be undertaken by the merchant.

The ministry had also announced a similar cashback scheme for individuals. The cashback scheme for individuals, too, has been revised recently, limiting it to new BHIM app users.

The promotion of digital payments is one of the topmost priorities of the government as it looks to bring every segment of society under the formal fold of digital payments services. The vision of the government is to provide a facility of seamless digital payment to all citizens in a convenient, easy, affordable, quick, and secured manner.  

The MeitY is working on various strategies, ideating with multiple stakeholders, including banks, central ministries and states, to create an ecosystem to enable digital payments across the country. Due to the efforts of the government, a number of digital transactions via the Unified Payments Interface stood at 1.78 billion between August 2016 and July 2018.

The MeitY is working on strengthening the digital payments infrastructure and creating awareness through promotion of digital payments with all the stakeholders. Citizens have been provided multiple options to make digital transactions. A dedicated Digidhan Mission has been set up by the MeitY for building strategies and approaches in collaboration with all stakeholders to promote digital payments and build awareness.

Promoting digital payments among merchants

• BHIM cashback scheme for merchants announced in June 2017
• Merchants could make up to Rs 1,000 every month through 20 unique transactions
• Scheme discontinued in July 2018
• Revised scheme to be announced in some months
• To increase uptake, repeat transactions to be eligible for cashback in revised scheme