BENGALURU: On Independence Day, the government will provide higher reimbursements if consumers opt for digital transactions using the Bhima application.
Operated by National Payments Corporation of India (INPC), the Bhima application works on unified interface (UPI) payments.
Prime Minister Bhim released in December, after demonetization, to stimulate digital payments.
President and CEO of NPCI, A P Hota told TOI that the proposed approval of an increase in government reimbursement incentives for the use of Bhima should take effect on August 15.
This also coincides with the planned deployment of a new version of Bhima. “We have informed the government that payment incentives should be increased so more people start using it.
We are waiting for government approval for August 15, “said Hota. Currently, these are cashbacks between Rs 10 and Rs 25.
The Hota push for greater incentives for users to Bhima also occurs after other payment applications in the country that offer reimbursement incentives to cost-effectively acquire customers and repeat transactions.
Companies such as Paytm and PhonePe, supported by global investors relied on these reductions to attract users on their platforms.
Currently, if one person refers to Bhima to another, she will receive Rs 10 bonus and the person who will receive Rs 25 in money back.
TOI had reported last month that banks could reduce UPI rates for traders in a move to support the number of transactions conducted through UPI.
After demonetization, the government has allocated over Rs 450 crore for payment incentives to be used for a period of six months from the April 14 birthday edition of Ambedkar BR.
The payment application has recently reached a user base of 16 million with 4 million active customers in the end of June
“We are also in the final version of Bhima’s 1.4 version, which will make application transactions smoother.
Among other updates, rapid response (QR) Bharat code will be integrated into the application, which should be another amplification factor to increase Bhim transactions ”
Hota said. Bharat QR allows stores to accept electronic payments from UPI cards or with the client scans the QR. Given the demonetization, the government has actively encouraged digital payments.