NPCI Introduces New UPI Scheme for Small Merchants

The National Payments Corporation of India (NPCI) has introduced the ‘UPI Vyapaar Saksham Scheme’ to encourage small merchants to adopt digital payments. According to an NPCI circular, small merchants with an annual turnover of up to ₹40 lakh will be eligible for incentives under the scheme. Eligible merchants can receive ₹300 for installing a QR code at a new merchant location and ₹750 for installing a soundbox. The initiative aims to expand the use of UPI payments among small businesses and make digital transactions more accessible.

The scheme will focus particularly on Tier-3 to Tier-6 cities, the northeastern states, Jammu and Kashmir, and Ladakh. Incentives will apply to eligible UPI transactions of up to ₹2,000. As per the circular, 5% of the Merchant Discount Rate (MDR) share of UPI members will be contributed to the scheme's fund. The scheme will remain in operation for three years from the date the MDR comes into effect. Through this initiative, NPCI aims to encourage more small merchants to adopt QR-based payments and soundbox technology, strengthening India's digital payment ecosystem.