Cashbacks and incentives on BHIM: Here’s all you need to know

Cashbacks and incentives on BHIM: Here’s all you need to know

The BHIM app was launched by the government in December 2016 in an attempt to promote cashless transactions through UPI adoption. This scheme came in at a time when various e-wallets and digital payment applications had jumped to the fray to cater to a newly acquired digital payment user base. Recently, the government has decided to up the ante by offering cashback and incentive schemes to both the consumers and merchants to encourage more transactions. Let’s look at the offered benefits in detail.

How much cashback is offered 

The Cashbacks offered are different for customers and merchants. While a merchant can get a cashback of up to Rs 1000/ month, a consumer can earn a cashback of Rs 750/month. A new user gets a cashback of Rs 51 on the first transaction.

How does it work

The BHIM app offers a cashback of Rs 51 to first-time users irrespective of the size of the transaction. The transaction amount could be as low as Rs 1.

Following the first transaction, for every unique transaction worth a minimum of Rs 100 for the subsequent 20 times, you can get a cash back of Rs 25/transaction. This means one can get a cashback of up to Rs 500.

BHIM also offers a cashback incentive of Rs 100 for a minimum transaction value of Rs 10 each, when the number of transactions is more than 25 but less than 50. When the number of transactions is in between 50 to 100, you can get a cashback of RS 200 and when the number is more than 100, you can get a cashback of Rs 250.

Therefore, the total cashback amount a user can avail in a month is Rs 750.

Benefit for merchants

Merchants using the BHIM application platform to accept payment from customers can get a cashback of up to 10% of the transaction value, with the maximum cashback of Rs 50 on each transaction. Merchants are required to make at least 10 credit transactions with a minimum transaction amount of Rs 25.

One important point to note is that the cashback amount may not get credited immediately after the transaction, taking up to 40 days to reflect.

Cashback, a promising model

The cashback model looks promising as it has earned immense popularity among its counterparts in the recent past. You can use the BHIM app to make payment for transactions using UPI ID, QR code, mobile number etc. Going forward, the government may boost the attractiveness of the BHIM app by setting up scheduled bill payment options.


Source by:-timesnownews