NPCI's UPI Vyapaar Saksham Scheme: ₹300 for QR Codes and ₹750 for Soundboxes
NPCI is reportedly planning the UPI Vyapaar Saksham Scheme to encourage small traders to adopt digital payments. According to a leaked memo, eligible merchants may receive ₹300 for installing QR codes and ₹750 for adopting Soundbox devices. The proposal also includes additional incentives for increasing UPI transactions and payment volumes.
November 14, 2026: The National Payments Corporation of India (NPCI) is planning a new initiative to increase the use of digital payments among small traders across the country. Under the proposed 'UPI Vyapaar Saksham Scheme ', small shopkeepers and merchants will be encouraged to accept UPI payments. The initiative may offer financial incentives for activities such as installing QR codes in shops and adopting digital payment devices.
Details of the proposed scheme have emerged from a leaked memo reportedly sent by NPCI to UPI members. Zee News journalist Ambarish Pandey shared the memo on the social media platform X. According to the report, NPCI Executive Director (Growth) Sohini Rajola sent the memo to UPI members. However, NPCI has not yet made an official announcement about the scheme.
Which Areas Will Get Special Focus Under the Scheme?
The main objective of the UPI Vyapaar Saksham Scheme is to expand digital payments among small merchants in smaller towns and remote areas of India. The initiative is expected to focus particularly on Tier 3 to Tier 6 cities and regions.
The North-Eastern states and the Union Territories of Jammu and Kashmir and Ladakh may also receive special attention under the proposed initiative.
Through this scheme, NPCI aims to bring more merchants into the UPI system, increase the number of regular digital transactions and boost the overall value of UPI payments.
₹300 for QR Code Installation and ₹750 for Soundboxes
According to the leaked memo, small merchants with an annual business turnover of up to ₹40 lakh may be eligible for incentives under the proposed scheme.
The proposed incentive structure includes:
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₹300 for installing QR codes at the shops of new merchants.
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₹750 for installing Soundbox devices.
Apart from encouraging small traders to adopt UPI payments, the scheme also proposes additional incentives for increasing regular digital transactions.
Additional Incentives for Higher Transaction Volumes
The proposed incentive structure focuses on three key areas:
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Bringing new merchants into the UPI system.
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Increasing the number of UPI transactions.
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Increasing the total value of eligible transactions.
According to the memo, small merchants may receive an incentive at the rate of 0.03% of the total value of eligible transactions. Merchants operating in specifically targeted areas may also receive an additional 50% incentive over the base rate.
The scheme may cover transactions made by both new and existing small merchants. Peer-to-merchant transactions may also qualify for incremental growth incentives under certain conditions. However, the increase in transaction value compared with the previous quarter must be positive.
5% of MDR Collection May Be Allocated to the Scheme
The leaked memo also mentions a proposal to allocate 5% of the amount collected through the Merchant Discount Rate (MDR) towards the scheme. The proposed allocation may be divided into three categories:
| Category |
Proposed Allocation |
|---|---|
| Addition of new merchants |
30% |
| Increase in transaction volume |
50% |
| Increase in total transaction value |
20% |
The memo also provides details about the proposed duration of the scheme. It suggests a sunset period of three years from the date of implementation of MDR charges. Earlier reports had indicated that MDR charges could be introduced after Diwali.
Target to Install Up to 1 Crore New QR Codes Every Year
According to the leaked memo, NPCI expects two major outcomes from the UPI Vyapaar Saksham Scheme.
First, the initiative aims to facilitate the installation of 60 lakh to 1 crore new physical QR codes every year. Second, it targets the distribution of 5 lakh to 10 lakh new Soundbox devices to merchants annually.
If implemented, the initiative could encourage more shopkeepers in small towns, villages and remote areas to adopt digital payment methods. It may also help expand the UPI network and increase regular digital transactions across the country.
However, NPCI is yet to officially announce the scheme's final guidelines, eligibility criteria, incentive structure and launch date. More details are expected once the organisation releases an official update.
