In a move that will encourage small shops to accept electronic payments, the government has decided to bear the charges merchants pay to banks on purchases up to Rs 2,000 using a debit card, Bhim or Aadhaar. The subsidy will be available for a period of two years starting from January 1, 2018.
Given that the average debit transaction in India is below Rs 1,500, accepting debit cards will become almost as cheap as accepting cash for small merchants. Announcing the decision taken at the Cabinet meeting on Friday, IT minister Ravi Shankar Prasad said that the government was trying to accelerate digital payment in the country.
 

In a move that will encourage small shops to accept electronic payments, the government has decided to bear the charges merchants pay to banks on purchases up to Rs 2,000 using a debit card, Bhim or Aadhaar. The subsidy will be available for a period of two years starting from January 1, 2018.
Given that the average debit transaction in India is below Rs 1,500, accepting debit cards will become almost as cheap as accepting cash for small merchants. Announcing the decision taken at the Cabinet meeting on Friday, IT minister Ravi Shankar Prasad said that the government was trying to accelerate digital payment in the country.