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How government is promoting Digital Payments – A Step to Digital India

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15 Dec How government is promoting Digital Payments – A Step to Digital India

Undoubtedly, Indian public and bankers are facing hardship and also hampering the current growth of Indian Economy but that will give a positive long lasting effect. In all the demonetisation crisis a step towards digital payments has been offering benefits to the country. With mixed opinions of good and bad effects of demonetisation government has come up with great plans on payment through net banking.
Here below mentioned are the incentives provide by PM Narendra Modi for Indian public:-
1. Central Government Petroleum PSUs: A discount at the rate of 0.75% of the sale price to consumers on purchase of petrol or diesel if payment is made through digital means.

2. 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.

3. Rupay Kisan Cards: 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. Suburban Railways: A discount up to 0.5% is provided to the customers for monthly or seasonal tickets from January 1 2017, if payment is made through digital means.

5. Indian Railways: All railway passengers buying online ticket shall be given free accidental insurance cover of upto Rs. 10 Lakh.

6. Services in Indian Railways: For paid services e.g. catering, accommodation, retiring rooms etc. being offered by railways, will provide a discount of 5%, if payments are made through digital means.

7. Public sector insurance companies: They will provide discount or credit, 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. Transaction fee: The Central Government Departments and Central Public Sector Undertakings will ensure that they will absorb the transaction fee/MDR charges related to digital payment and consumer should not be asked to bear it.

9. Public Sector Banks: They are advised that merchant should not be required to pay more than Rs. 100 per month as monthly rental for PoS terminals/Micro ATMs/mobile POS from the merchants to bring small merchant on board the digital payment eco system.

10. Service Taxes: No service tax will be charged on digital transaction charges/MDR for transactions upto Rs. 2000 per transaction.

11. Toll Taxes: For the payment of toll at Toll Plazas on National Highways using RFID card/Fast Tags, a discount of 10% will be available to users in the year 2016-17.

In short the benefits of using digital payments go well beyond the convenience, if provide efficiently and effectively, they can transform the lives of those who use this technology. This is one type of infrastructure investment which can lead to sustained economic growth and greater financial inclusion from citizens in country.