cash only

To incentivize people to adopt digital modes of payment, the government has announced two programmes which will provide cash awards to customers and merchants. The scheme specially focuses on bringing the poor, lower middle class and small businesses into the digital payments fold. The two programmes are:

Lucky Grahak Yojana, where consumers will get a daily reward of Rs 1000 to be given to 15,000 people for a period of 100 days. There is also a weekly prize where consumers will get Rs 1 lakh, Rs 10,000 and Rs 5,000 and who use digital payments modes such as UPI, USSD, Aadhaar Enabled Payment System (AEPS) and RuPay Cards. For the time being, the government has excluded transactions through private credit cards  (Visa, MasterCard, American Express etc) and digital wallets. Both the prizes will be a lucky draw.

Digi-dhan Vyapar Yojana, where merchants will be able to get weekly prizes worth Rs 50,000, Rs 5,000 and Rs 2,500.

In addition, the government is giving out a mega draw on April 14th where prizes worth Rs 1 crore, 50 lakh, 25 lakh for consumer digital transactions between 8th November, 2016 to 13th April, 2017.  For merchants, prizes worth Rs 50 lakhs, 25 lakh, 12 lakh  will be given for digital transactions between 8th November, 2016 to 13th April, 2017.

Note that this is applicable only for small transactions within the range of Rs 50 and Rs 3000. The winners shall be identified through a random draw of the eligible Transaction IDs, which are generated automatically as soon as the transaction is completed. As special software developed by the NPCI will be used for this.

Growth in digital transactions

– RuPay cards, at ecommerce sites and POS machines, showed a growth of 316% to 16 lakh on December 7 from 3.85 lakh from November 8.

– Digital wallet transactions grew 271% to 63 lakh on December 7 from 17 lakh on November 8.

– UPI transactions grew from 3721 from November 8 to 48,238 on December 7.

– POS transactions increased 95% from 50.2 lakh on November 8 to 98.1 lakh transactions at the end of December 7.


Note that there are inconsistencies from the data the government has provided in the press release with provisional data the RBI has been giving. The RBI’s data itself is incomplete and does not include lot transactions made on many wallets and includes card transactions from only four banks.