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
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