NITI sets Rs 125 crore budget for lucky draws to encourage digital transactions

New Delhi: In a bid to promote electronic transactions, NITI Aayog has asked NPCI to frame an award scheme to incentivise people using digital mode for making payments through weekly and quarterly lucky draws.

The annual budget for this new scheme is reportedly Rs 125 crore and NITI Aayog has requested National Payments Corporation of India (NPCI) to conceptualise and launch a new scheme to incentivise digital payments. NPCI is a not for profit company which is charged with a responsibility of guiding India towards being a cashless society.

According to a NITI Aayog statement, there has been a remarkable increase in both volume and amount of digital payment transactions since November 9, when government demonetised high value notes of Rs 500 and Rs 1,000.

It is necessary to ensure that electronic payments are adopted by all sections of the society, it said.

"We need to encourage electronic payments and nudge the society to move from digital to digi-dhan," NITI Aayog said.

Under the proposal all consumers and merchants using digital payments shall be eligible.

There will be two levels of incentive amounts available under the scheme. First, weekly lucky draw of the transaction IDs generated in that week. The contours of which are being finalised, it said.

NITI Aayog has also proposed quarterly draw for grand prizes and asked NPCI that while designing the scheme the focus will be on poor, lower middle class and small businesses.

All modes of digital payments - USSD, AEPS, UPI and RuPay Cards - will be eligible under the scheme. For merchants, transactions made on the POS machines installed at their locations would be considered, it said

NITI Aayog said that the detailed guideline of the scheme shall be unveiled soon. However, it would be ensured that all those who have used digital payment systems after November 8 shall be eligible to participate in the scheme.

The scheme would also provide for recognition of state governments, their undertakings, districts and urban & rural local bodies who innovate for promoting electronic payment in their respective jurisdictions.