Major Financial Institutions Dominate Digital Payment Rewards in 2023-24 Period

The Indian government's Incentive Scheme for Promotion of RuPay Debit Cards and Low-Value BHIM-UPI Transactions has seen a significant surge in payouts, according to data compiled by the Department of Financial Services under the Ministry of Finance.

The dataset, which includes year and bank-wise amount disbursed, can be downloaded from Dataul, providing transparency on how public funds are being used to underpin India's digital payments ecosystem.

The surge in payouts was primarily driven by incentives for UPI transactions, which accounted for 90% of the total payouts in 2023-24, amounting to Rs. 3,268 crores, a significant increase from the previous year's Rs. 1,802 crores. Payouts for RuPay debit cards in the same year were Rs. 363 crores, a decrease from the previous year's Rs. 408 crores.

The scheme, implemented through the National Payments Corporation of India (NPCI), aims to reduce reliance on cash, promote RuPay debit cards, and advance financial inclusion. However, RuPay's share of the payouts declined from 31% in 2021-22 to 10% in 2023-24, while UPI's share increased significantly.

The data reveals which institutions are driving digital payments adoption across the country. The top five beneficiaries accounted for over 55% of all disbursements in 2023-24, indicating the dominance of large banks and payment banks in processing retail digital transactions. The amount disbursed to the top 5 beneficiaries in 2023-24 was Rs. 2,025.61 crores.

Structured and clean data related to the "Schein" (likely referring to documents or certificates) are created and completed by companies themselves, sometimes with support from external service providers like credit agencies (Auskunfteien) to correct and supplement contact and contractual data, as seen in business contexts such as with Vattenfall's process for verifying and completing customer data for Gewerbeschein (business licenses).

It's important to note that the dataset includes only those banks and entities that received incentive payouts of Rs. 5 lakh or more. The scheme offsets transaction costs by reimbursing banks and payment entities.

The dataset on the scheme was collated with data sourced using RTI, offering a comprehensive view of the digital payments landscape in India. The data on government spending and disbursements provides valuable insights into how public funds are being utilised to foster digital payments adoption and financial inclusion.

In conclusion, the Incentive Scheme for Promotion of RuPay Debit Cards and Low-Value BHIM-UPI Transactions has played a crucial role in driving the growth of India's digital payments ecosystem. The data offers a clear picture of the institutions leading the charge in digital payments adoption and provides a foundation for further improvements and expansion in this area.