Demonetisation – Government of India’s Measures to Promote Cashless Transactions

government-cashless-transactions The central Government of India has announced a slew of measures for systemic adoption of digital / plastic currency. The benefits accorded to digital transactions and benefits perceived by the government are as follows,

  • Discount of 0.75% on digital payments at central government petroleum PSUs – Will benefit 45mn customers at petrol pumps everyday. The incentive can shift 30% of customers to digital payments. Reduce cash requirement by Rs 2tn at petrol pumps every year.
  • No service tax on digital transaction charges/MDR up to Rs 2000 per transaction
  • Discount or credit of up to 10% on insurance premium sold through customer portals of public sector insurance companies
  • 10% discount on toll payment on National Highways using RFID card/Fast Tags in 2016-17
  • Discount of 0.5% on monthly and seasonal pass from 1st January 2017 on suburban railway network – Will benefit 8mn passengers. Cash requirement to reduce by Rs 10bn per year
  • Free accidental insurance up to Rs 1mn on buying online tickets in railways – Will benefit 1.4mn passengers everyday. Expected to shift 20% of passengers to online payments
  •  PSUs advised not to charge more than Rs 100 per month on PoS terminal/Micro ATMs/mobile PoS from merchants -Merchants will benefit from lower rentals and assist greater adoption.
  •  2 POS devices will be deployed in 100 thousand villages with population of less than 10,000
  • Rural regional banks and cooperative banks to issue Rupay Kissan Card to 43.2mn Kissan Credit Card holders. Government will support this through Nabard

Any other suggestion you may have to the Government of India can be conveyed on MyGov

Leave a Comment