Promoting Digital Payments: MeitY's Digidhan Mission

Prime Ministers Awards for Excellence in Public Administration, 2018 Promoting Digital Payments 3/20/2025 Ministry of Electronics & IT (MeitY) 1

Agenda 03 01 Evaluation Framework Digital Payments 02 04 PM Awards Scheme Expectation from States 3/20/2025 Ministry of Electronics & IT (MeitY) 2

01 Digital Payments - Mission 3/20/2025 Ministry of Electronics & IT (MeitY) 3

Digidhan Mission Introduction 01 Several initiatives are being taken by Government to promote a digital payment ecosystem. The Government has announced setting up of a mission with a target of 2,500 crore digital payment transactions during financial year 2017-18 Ministry of Electronics & IT (MeitY) has been entrusted for the promotion of digital payment transactions A mission was created under the name DIGIDHAN with the primary target of promoting the digital payments in the country MeitY is actively working on various strategies and is operating with multiple stakeholders including Banks, Central Ministries/Departments and States to create a conducive environment to enable digital payment across India 3/20/2025 Ministry of Electronics & IT (MeitY) 4

Digidhan Mission Key Objectives 01 Key Objectives To achieve 2500 Cr digital transactions in FY 2017-18 through digital payment modes including UPI , USSD , IMPS , Aadhaar Pay and Debit Cards Promotion of digital payments and overseeing the growth of digital payments in the country Support in development of low cost and easy to use digital payments solutions for each section of population Ensure highest performance levels and quality of services in digital payments Ensuring higher level of security of digital payments ecosystem, leading to increased trust levels in digital payments 3/20/2025 Ministry of Electronics & IT (MeitY) 5

Digital Payments Digital Payment Growth (1/2) 01 Growth of digital transactions in India since 2009 Target 2500 Cr in 17-18 Growth of Digital Growth of Digital Transactions (in Transactions (in Cr) Cr) 1200 998 1000 800 552 600 369 400 255 175 200 127 96 75 0 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 3/20/2025 Ministry of Electronics & IT (MeitY) Source : Reserve Bank of India 6

Digital Payments Digital Payment Growth (2/2) 01 3/20/2025 Ministry of Electronics & IT (MeitY) 7

Digital Payments Benefits 01 Benefits of Digital Payments Convenience of use Anytime, Anywhere, Any mode Secure transactions Facilitate financial inclusion Incentive, cashback, offers and promotional schemes on digital payments No fear of losing cash or getting fake currency No need to handle cash 3/20/2025 Ministry of Electronics & IT (MeitY) 8

01 Digital Payments - Modes 3/20/2025 Ministry of Electronics & IT (MeitY) 9

Digital Payments (1/7) 01 Bharat Interface for Money (BHIM) BHIM enables the customers to make simple, easy and quick payment transactions Customers can collect money using mobile number or virtual payment address Customers can also make merchant payments using BHIM app Service available are: send money, receive money, scan and pay, approve/reject the collect request, generate static and dynamic QR code, log a complaint, manage profile and bank account 3/20/2025 Ministry of Electronics & IT (MeitY) 10

Digital Payments (2/7) 01 Unified Payment Interface (UPI) UPI is a payment system that powers multiple bank accounts into to single mobile app Each bank provides its own mobile app Funds can be transferred between two accounts using UPI app Customers will have to register for mobile banking to use UPI apps Customers need to download a UPI app and create a virtual payment address (VPA) or UPI ID to transact 3/20/2025 Ministry of Electronics & IT (MeitY) 11

Digital Payments (3/7) 01 Cards Cards are provided by banks to account holders and are the most used digital payment modes till date Credit cards, debit cards and prepaid cards are the main types of cards. Customers can also use RuPay debit card for digital payments Pre paid Linked to bank account Used at: ATMs, micro ATMs, PoS and online shopping (e- commerce) Used at: ATMs, PoS, online shopping (e- commerce) Preloaded card Can be recharged several times Can be used at PoS, online transactions, ATMs Credit Card Debit Card Instrument 3/20/2025 Ministry of Electronics & IT (MeitY) 12

Digital Payments (4/7) 01 Aadhaar Enabled Payment Service (AEPS) Facilitating Aadhaar number based banking transactions Simple, secure and user friendly mode of banking solution Inputs required Aadhaar number, biometric and bank name Customers do not need to carry mobile phone or card, or do not need to remember any password to transact. It uses customers fingerprint as a password. Financial transactions: cash withdrawal, cash deposit, Aadhaar to Aadhaar fund transfer Non-financial transactions: demographic authentication, e-KYC, balance enquiry, mini statement, mobile update 3/20/2025 Ministry of Electronics & IT (MeitY) 13

Digital Payments (5/7) 01 BHIM Aadhaar Allows merchants to accept payments via Aadhaar number Merchants have to download the app on mobile Benefits: i. ii. No debit or credit card required iii. No need to remember PINs, MPINs and passwords iv. Instant payment v. Affordable payment solution for merchants as well as customers Customers do not require mobile device or any other technology to make payments 3/20/2025 Ministry of Electronics & IT (MeitY) 14

Digital Payments (6/7) 01 USSD Banking or *99# Banking It is a mobile banking based digital payment mode Customer do not need to have a smartphone or internet connection to use USSD banking It can be accessed with any normal feature phone It is accessible through a common code *99# across all TSPs It uses customers registered mobile number to connect with bank account It acts as an additional channel for banking and a key catalyst for financial inclusion 3/20/2025 Ministry of Electronics & IT (MeitY) 15

Digital Payments (7/7) 01 Bharat QR Code World s first interoperable payment acceptance solution which makes use of QR codes system for payments in the country It is a quick response code jointly developed by National Payments Corporation of India (NPCI) that runs RuPay cards, Visa, MasterCard and American Express, under instructions from the Reserve Bank of India (RBI) With Bharat QR, customers do not need to enter merchant details to transact. They do not need to swipe credit, debit or prepaid cards on swipe machines They only need to scan the Bharat QR code with their smartphone camera. Enter the amount and UPI PIN to make the payment 3/20/2025 Ministry of Electronics & IT (MeitY) 16

01 Digital Payments - Schemes 3/20/2025 Ministry of Electronics & IT (MeitY) 17

Digital Payments Schemes (1/3) 01 Referral Bonus Scheme for Individuals Objective: To increase the uptake of BHIM by benefitting customers. Eligibility Criteria: i. Bonus will be paid to any new individual doing first 3 transactions of aggregated value of at least Rs. 50 even without referrer also Referral Bonus Cashback Amount Total Amount (in Rs.) per BHIM user New BHIM user (Referee) (per person) 25 Referrer (per person) 25 Total Referral Bonus Amount 50 3/20/2025 Ministry of Electronics & IT (MeitY) 18

Digital Payments Schemes (2/3) 01 Cash Back Scheme for BHIM Objective: To promote usage of BHIM by benefitting Merchants on BHIM transactions Eligibility Criteria: i. Minimum number of 20 credit transaction from valid UPI unique customers including that of BHIM users ii. Minimum transaction value of Rs. 25 No. of credit transactions (per month) Cash back to the merchant (at the end of the month) Conditions 20-50 Rs 50 The total cashback per merchant per month is Rs.1000 Rs. 2 per transactions up to Rs. 950 >50 3/20/2025 Ministry of Electronics & IT (MeitY) 19

Digital Payments Schemes (3/3) 01 Scheme for BHIM Aadhaar Objective: To promote usage of BHIM Aadhaar by incentivizing biometric transactions Eligibility Criteria: i. All merchant acquiring banks allowing Aadhaar based biometric transactions are eligible for support under this scheme ii. Transactions up to Rs. 2000 are eligible for support under this scheme Benefit to the bank Benefit to the merchant Incentive Conditions Minimum incentive of Rs 1 and maximum incentive of Rs 10 per transaction. Maximum incentive per merchant per month is restricted to Rs 2000 0.5% of transaction value 0.25% to defray operational cost 0.25% as an additional incentive 3/20/2025 Ministry of Electronics & IT (MeitY) 20

02 Prime Minister Awards Scheme 3/20/2025 Ministry of Electronics & IT (MeitY) 21

Prime Ministers Awards Scheme (1/3) 02 Category Priority Programmes Government of India has instituted a scheme, PrimeMinister s Awards for Excellence in Public Administration to acknowledge, recognize and reward the extraordinary work done by the Districts The following priority programme have been identified for the awards: i. Pradhan Mantri Fasal Bima Yojana ii. Promoting Digital Payment iii. Pradhan Mantri Awas Yojana (Rural & Urban) iv. Deen Dayal Upadhyays Grameen Kaushalya Yojana (DDUGKY) Period of consideration for priority programmes category is from 1st April, 2016 to 31st December, 2017 Implementing Units Districts Applicants District Collector/District Magistrate 3/20/2025 Ministry of Electronics & IT (MeitY) 22

Prime Ministers Awards Scheme (2/3) 02 Details of Award Grouping of States/Union Territories for awards in priority programmes are done to ensure rationality, equity and level-playing field. These are: i. Group 1: North-East States (8) and Hill States (J&K, HP, Uttarakhand) ii. Group 2: Union Territories (7) iii. Group 3: Remaining States (18) For each group, there would be one award under the priority programme The award shall consist of a Trophy and Scroll. The awarded district will be given an incentive of Rs. 10 lakh under the scheme to be utilized for implementation of project/programme or bridging resource gap in any area of public welfare 3/20/2025 Ministry of Electronics & IT (MeitY) 23

Prime Ministers Awards Scheme (3/3) 02 Criteria for Evaluation Evaluated on the basis of pre-determined parameters in consultation with the nodal Ministry Online applications shall be invited from the districts in the prescribed format detailing their achievements PM Award website can be accessed through the Link: http://nceg.gov.in/pmawards/public/login It is also available on DARPG s website www.darpg.gov.in 3/20/2025 Ministry of Electronics & IT (MeitY) 24

03 Prime Minister Awards Scheme Evaluation Framework 3/20/2025 Ministry of Electronics & IT (MeitY) 25

Evaluation Framework (1/4) 03 The parameters identified broadly covers the three important themes for promoting digital payments : Digital Payments, Financial Inclusion, and Promotion and Awareness Financial Inclusion Digital Payments Promotion and Awareness 3/20/2025 Ministry of Electronics & IT (MeitY) 26

Evaluation Framework (2/4) 03 Parameters i. Percentage of bank accounts seeded with Aadhaar number ii. Percentage of bank accounts seeded with mobile number iii. Percentage of government fair-price shops having digital payment facility iv. Percentage of government fertilizer retail shops having digital payment facility 3/20/2025 Ministry of Electronics & IT (MeitY) 27

Evaluation Framework (3/4) 03 Parameters i. The number of BHIM/UPI transactions per capita in a district ii. Cash outflow (withdrawal) per capita from banks for current year 2017 when compared with previous year ( 2016) on month on month Basis. iii. The percentage of registered merchants having digital payment acceptance infrastructure in a district iv. The number of government established touch points accepting money through digital payments v. Percentage increase in revenue collected from electricity bill payment through digital modes in a district from 1st April, 2016 to 31st Dec, 2017 3/20/2025 Ministry of Electronics & IT (MeitY) 28

Evaluation Framework (4/4) 03 Parameters vi. The number of PoS installed per capita in a district vii. The percentage of registered merchants having Bharat QR code in a district viii.The incentive delivered to the beneficiaries for BHIM/BHIM Aadhaar schemes in a district ix. The number of Business Correspondents (BCs) with respect to rural population in a district x. Strategy/methodology adopted to promote digital payment in a district 3/20/2025 Ministry of Electronics & IT (MeitY) 29

04 Prime Minister Awards Expectation from States 3/20/2025 Ministry of Electronics & IT (MeitY) 30

Prime Minister Awards Expectations from States (1 of 2) 04 Expectations from States State Level Conduct a state level workshop with all Districts Magistrates, SDMs, LDMs, DIOs to sensitize them digital payments and award. Conduct state level review, at least once every month on progress of Digital Payments. Promote PM Awards Scheme on the website of all States/Departments/Districts District Level Depute a nodal officer for enablement and promotion of Digital payments in the district Constitute s district level working group under the DM with all stake holders (LDM, District Representative of all major banks, DIO, ADM/SDMs). The district level review may be conducted once in every 15 days. 3/20/2025 Ministry of Electronics & IT (MeitY) 31

Prime Minister Awards Expectations from States (2 of 2) 04 Expectations from States District Level Identify and list all merchant points (both public and private) including, Govt./PSU Receipt Point, Utility bill points, Ticket Counters, Public Transport, FPS shops, Fertilizer retail points Enable acceptance infrastructure for digital Payments at these identified points. Create a promotion and awareness plan with participation from Panchayats, Wards, and elected representatives. Organize half day session all Schools/Colleges on awareness on digital payments Regular tracking of KPIs like BHIM Aadhaar deployment, BHIM Downloads, Bharat QR enablement, Mobile and Aadhaar seeding, Promotion activities. 3/20/2025 Ministry of Electronics & IT (MeitY) 32

Thank You 3/20/2025 Ministry of Electronics & IT (MeitY) 33