BHIM Referral and cash back schemes

The incentive schemes viz. BHIM – Cash back and Referral bonus that were launched on April 14, 2017, has now been revised and extended for the period 1.4.2018 to 31.03.2019.

This is to ensure that the culture of digital payments permeates down to the grassroots. Both schemes are being administered by Ministry of Electronics & Information Technology, Government of India (MEITY) and implemented by National Payments Corporation of India (NPCI) .

BHIM app

The Bharat Interface for Money (BHIM) app was launched during December 2016. The app is available for Bharat Interface for Money app (for Android phones), Bharat Interface for Money app (for iOS phones).

BHIM-Aadhaar is the merchant interface of the BHIM App that paves the way for merchants to receive digital payment from users by using the Aadhaar platform.

Schemes to promote BHIM

The Government of India has launched the following schemes to reward BHIM users.

BHIM Cashback Scheme (For Individuals)

This scheme has been designed to encourage the onboarding of new users on the BHIM App and increase the usage of UPI based transactions.

Incentive for onboarding over BHIM App will be valid for BHIM App only users. Incentive will be paid to the new users of the BHIM app who successfully download the BHIM app, link the BHIM app with their bank account/s and undertake ten successful unique financial transaction through BHIM app each of Rs 50 or more. An amount of Rs 150 is paid as an cashback to the user. The incentive will paid only one time and for the new users only.

Cashback will be paid to eligible New BHIM App users ie. those who download the app for the first time and make the specified number of transactions between the period beginning from 4th July 2018 till 31st March 2019.

BHIM Aadhaar Merchant Incentive Scheme

BHIM Aadhaar Pay enables Merchants to receive digital payments from customers over the counter through Aadhaar Authentication. It allows for any Merchant associated with any acquiring bank live on BHIM Aadhaar Pay , to accept payment from customer of any bank by authenticating customer’s biometrics.

To be able to effect the same, merchant should have an Android mobile with BHIM Aadhaar app and certified biometric scanner attached with mobile phone/Kiosk/Tablet on USB Port or Micro-ATM/POS, mPOS. Both Customer and Merchant should have their Aadhaar linked to their Bank Account.

BHIM Aadhaar Pay App user who has declared himself/herself as Merchant and is receiving payments via BHIM Aadhaar app will be eligible for an Incentive of 0.5% of the transaction value with minimum incentive as Rs.2 and upper cap of Rs.50 per Transaction. Maximum transaction limit is Rs.10,000.

Aadhaar Authentication should be done using any Registered device viz, Micro-ATM/POS, mPOS, Kiosk/Tablet/Mobile Handset provided that transaction is for sale of Goods and Services by a merchant establishment and payment is by Aadhaar Number and biometrics.

Waiver of MDR

When payment is made at a merchant point of sale, MDR is payable by the merchant to the bank. Citing this, many people make cash payments inspite of having debit cards. Similarly, MDR is charged on payments made to merchants through BHIM UPI platform and AePS.

Merchant Discount Rate (MDR) applicable on all debit card/BHIM UPI/ Aadhaar enabled Payment System (AePS) transactions upto and including a value of Rs. 2000 will be borne by the Government for a period of two years with effect from 1st January, 2018 by reimbursing the same to the banks.

Source : MeitY