Following the recent announcement about a push for cashless transactions in India, the Government of India is taking big steps to make them a common reality in India. Rakesh Dubbudu from Factly finds out more.
The Government of India has announced a package of incentives to encourage digital transactions. Here is the list of such incentives & measures:
1. The Central Government Petroleum PSUs will offer a discount of 0.75% of the sale price to consumers on purchase of petrol/diesel if payment is made through digital means.
2. To expand digital payment infrastructure in rural areas, the Central Government – through NABARD – will extend financial support to eligible banks for deployment of 2 POS devices each in 1 Lakh villages with population of less than 10,000.
These POS machines are intended to be deployed at primary cooperative societies/milk societies/agricultural input dealers to facilitate agri-related transactions through digital means.
3. The Central Government – through NABARD – will also support Rural Regional Banks and Cooperative Banks to issue “Rupay Kisan Cards” to 4.32 crore Kisan Credit Card holders to enable them to make digital transactions at POS machines/Micro ATMs/ATMs.
4. Railway – through its suburban railway network – shall provide incentive by way of discount of up to 0.5% to customers for monthly or seasonal tickets from January 1, 2017, if payment is made through digital means.
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5. Railways shall give free accidental insurance cover of up to Rs. 10 lakh to all railway passengers buying online tickets.
6. For paid services – e.g. catering, accommodation, retiring rooms, etc. the railways is offering through affiliated entities/corporations to passengers – it will provide a discount of 5% for payment of these services through digital means.
7. Public sector insurance companies will provide incentive, by way of discount or credit, of up to 10% of the premium in general insurance policies, and 8% in new life policies of Life Insurance Corporation, sold through the customer portals, in case payment is made through digital means.
8. The Central Government Departments and Central Public Sector Undertakings will ensure that consumers will not face digital payment transactions fee/MDR charges, and they shall bear all such expenses.
The Centre is advising State Governments that they should consider fulfilling digital payment transaction fee/MDR charges, instead of consumers.
9. The Government has advised public sector banks that a merchant should not have to pay more than Rs. 100 as monthly rental for PoS terminals/Micro ATMs/mobile PoS, to bring small merchants within the digital payment eco-system.
10. Merchants will charge no service tax on digital transaction charges/MDR for transactions up to Rs. 2,000 per transaction.
11. Using RFID Card/Fast Tags for National Highways’ tolls, users will get a discount of 10% in the year 2016-17.
To know more about the push for a cashless India and associated benefits, visit the Cashless India website.