What It Does
Requires all payment gateways to process transactions under ₹500 without merchant fees in designated rural districts, and pilots a decentralized wallet system for direct benefit transfers.
Framing Lens
If you buy something under ₹500 from a rural shop or vendor, there will be no processing fees for the transaction. Also, government welfare money will be paid directly into secure digital wallets.
What Could Change
- Small rural businesses will keep 100% of their earnings on digital payments under ₹500.
- Welfare money will be transferred faster and more securely without middlemen.
Key Provisions
Zero-Fee Micro-Transactions
Abolishes all processing fees on digital payments under ₹500 for registered vendors in Tier-3 cities and below.
Decentralized Subsidies
Transitions 40% of state welfare payouts to a blockchain-backed ledger to ensure instant delivery.
Supporters Say
It creates a frictionless digital economy for the poorest citizens, making it economically viable for a street vendor to accept digital payments.
Critics Say
The mandate forces fintech platforms to absorb massive operational costs, which could stifle innovation or be passed onto urban consumers.