These schemes seek to give cash awards to consumers and merchants who utilize digital payment instruments for personal consumption expenditures. The scheme specially focuses on bringing the poor, lower middle class and small businesses into the digital payment fold. It has been decided that National Payment Corporation of India (NPCI) shall be the implementing agency for this scheme.
The primary aim of these schemes is to incentivize digital transactions so that electronic payments are adopted by all sections of the society, especially the poor and the middle class. The scheme became operational with the first draw on 25th December, 2016 (as a Christmas gift to the nation) leading to a Mega Draw on Babasaheb Ambedkar Jayanti on 14th April 2017. It comprises of two major components, one for the Consumers and the other for the Merchants:
a) Lucky Grahak Yojana [Consumers]:
i. Daily reward of Rs 1000 to be given to 15,000 lucky Consumers for a period of 100 days;
ii. Weekly prizes worth Rs 1 lakh, Rs 10,000 and Rs. 5000 for Consumers who use the alternate modes of digital Payments
This will include all forms of transactions but will for the time being exclude transactions through Private Credit Cards and Digital Wallets.
b) Digi-धन Vyapar Yojana[ Merchants]:
i. Prizes for Merchants for all digital transactions conducted at Merchant establishments
ii. Weekly prizes worth Rs. 50,000, Rs 5,000 and Rs. 2,500
c) Mega Draw on 14th of April – Ambedkar Jayanti
(a) 3 Mega Prizes for consumers worth Rs 1 cr, 50 lakh, 25 lakh for digital transactions between 8th November, 2016 to 13th April, 2017 to be announced on 14th April, 2017
(b) 3 Mega Prizes for merchants worth Rs 50 lakhs, 25 lakh, 12 lakh for digital transactions between 8th November, 2016 to 13th April, 2017 to be announced on 14th
To ensure that the focus of the scheme is on small transactions (entered into by common people), incentives were restricted to transactions within the range of Rs 50 and Rs 3000. All transactions between consumers and merchants; consumers and government agencies and all AEPS transactions are considered for the incentive scheme.
The winners were identified through a random draw of the eligible Transaction IDs [which are generated automatically as soon as the transaction is completed] by software to be especially developed by NPCI for this purpose. NPCI has been directed to ensure a technical and security audit of the same to ensure that the technical integrity of the process is maintained.
The estimated expenditure on the first phase of the scheme (up to 14th April 2017) was 340 Crores. The Government will simultaneously carry out a review for further implementation.