Independence Day: Government to give higher cashbacks to BHIM users
What's the story
Get ready to have cashbacks as rewards this Independence Day as the government is all set to offer some if you opt for digital transactions using the BHIM App. Apparently, the government has introduced the cashback incentive to attract more consumers. Currently, cashbacks are between Rs. 10 and Rs. 25. A new version of BHIM app will also be rolled out this August 15.
Information
What is BHIM?
BHIM, the mobile app, was launched by PM Modi in December 2016 after demonetization. It was developed by NPCI and is based on the Unified Payment Interface (UPI). The app facilitates e-payments directly through banks and thereby promotes cashless transactions.
Competition
BHIM competes with Paytm, PhonePe
The government's push for cashback incentives was proposed by NPCI MD & CEO AP Hota as other payment apps like Paytm and PhonePe are offering high cashbacks. Paytm and PhonePe backed by global investors, have attracted customers onto their platforms through these discounts.
Updates
BHIM app to get updated!
Following the announcement of cashback incentives, it was reported that banks might cut UPI charges for merchants to increase the number of transactions made through UPI. Also, the government had allocated over Rs. 450 crores for cashback incentives to be used for a period of six months starting April 14. Further, Bharat quick response (QR) code will be integrated to enable digital payments.