Mobikwik's co-founder and CEO Bipin Preet Singh has criticised BHIM, the government-backed UPI app and its cashback offers. Singh suggests that while the government funded cashback scheme was designed to benefit the entire UPI ecosystem, it only ends up benefiting the BHIM app and its user base. This basically means that the government-funded cashback incentives are not applicable to non-bank apps or third-party payment providers such as Mobikwik, Google’s Tez, PhonePe and others who run on the same UPI platform. “Its incredible that both private and public sector bank apps get the benefit of Govt promotions but startup apps (which follow same level of compliance) & which are attracting much valuable FDI, creating new technology & thousands of new jobs are denied this opportunity,” Singh writes in a blog post on Medium. As per NPCI's circular, the cashback scheme which was started in 2017 was supposed to be till March 2018 but has been extended for another year. The circular states that a consumer who uses either the BHIM application which is run by the NPCI or a bank-led UPI application is eligible for cashback on unique UPI transactions. The minimum value of such transactions has to be ₹100 and users can get up to ₹25 for a maximum of 20 transactions per month. For repeat transactions, the government offers cash back up to ₹250 per month. So on paper, a user could stand to earn up to Rs 750 in cash backs every month. “So here’s the thing —…
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