Picture this: you pay ₹100 for groceries via UPI and receive ₹2 back right away. Sounds like a fantasy? Well, hold on; the Indian government is truly trying to make this a reality. In fact, UPI users may soon enjoy cashback perks.
However, you might want to think twice if you usually pay with a card. Typically, credit cards come with hidden costs called MDRs (Merchant Discount Rates), which can range from 2 to 3%. Most of the time, sellers cover this cost but sometimes they cleverly pass it on to customers without them realizing it. So, in reality, you might be paying more than you expected.
What’s Changing?
The government is shaking things up with a new plan. If it goes through, users will get 2% cashback on every UPI payment, putting extra money back in their pockets. This means you could only have to pay ₹98 when purchasing anything worth ₹100.
This approach benefits more people than just customers. Small retailers and local vendors also have much to gain. UPI has no MDR costs as credit card payments do. That translates into more smiles all around and more money in their pockets. It’s advantageous for both sides.
Why now?
Digital payments have surged but the government seeks even more people onboard. Offering cashback is a clever nudge. Meetings with big names—NPCI, e-commerce agents, payment apps are set for June, as per the sources. This initiative could be implemented sooner than you would expect once everyone is on the same page.
Actual People, Actual Savings
Let’s be honest. Even ₹2 counts during challenging times. It’s about feeling valued and receiving incentives for opting digital as much as it is about money. Using UPI is already quite simple. It could be profitable right now as well.
So next time you whip out your phone to scan that QR code, just know—you’re not just paying. You’re likely to get a bit back too.
Stay tuned. One UPI transaction could be all indicates the cashback age.