Union Budget 2017 is important as this is the first budget after demonetization. We already have hint that government will include the benefits to promote digital and cashless transactions , and with this announcement user will be tempted to use BHIM app for making digital payment.
BHIM and Digital Payments in India
After demonetization to promote the digital transactions government created mobile app called Bharat Interface For Money (BHIM) which is capable to send payment to any bank account with mobile number / virtual payment address (VPA) and bank account + IFSC code based on the technology created by NPCI call UPI. UPI is the unique technology in payments which is soon to be patented by India. The BHIM also linked to Aadhaar by Government
The BHIM is recently updated with the facility which now capable to send money even to Aadhaar numbers after launching Aadhaar Pay.
Announcement of Cashback and Bonus Schemes
Arun Jaitley said that the BHIM app will be updated with two new schemes which will benefit both individual users and merchants.
“Nearly 125 lakh people have adopted the BHIM app. Government will launch two new schemes — a referral bonus for consumers and a cash-back scheme for merchants — to promote the use of BHIM,” Jaitely said while presenting the Union Budget 2017-18 in the Lok Sabha.
The two new schemes targetting both the end viz. Customer and Merchant set to launch for BHIM app includes
- bonus scheme and
- Cashback scheme.
Of the above the bonus scheme will be for the individual users, and the cashback scheme will be for the merchants. We are yet to see how the schemes will play out for BHIM app users. In addition to this, Arun Jaitley also said that BHIM app has 1.25 crore users until now.
Target : 2500+ Crore Digital Transactions
Arun Jaitley laid out the target that this year would witness 2,500 crore digital transactions through various modes like UPI, IMPS, debit and credit cards, and more. Jaitley also announced that the government would create a payment regulatory board at the RBI this year, since there is no regulator for FinTech companies like Paytm in India.
"Union Budget 2017-18: Now Get Cashback And Bonuses On BHIM App Transactions With Government's New Schemes",