Go in for cashless transactions and get discounts, says govt.

Jaitley announces slew of measures to promote digital dealings

Union Finance Minister, Arun Jaitley addressing a press conference

Almost a month into demonetisation of old Rs. 500 and Rs. 1,000 notes, the Finance Ministry has come out with a slew of incentives to push cashless transactions.

At a press conference in New Delhi on Thursday, Finance Minister Arun Jaitley said dealing with cash has economic as well as in-built cost in a democratic set-up.

Following are the measures aimed at expediting digital transactions.

>> Digital payments for buying petrol and diesel will get a 0.75 per cent discount. Payments through digital mode availing services such as catering, accommodation, and retiring room in railways will get five per cent discount.

>> Suburban railway network shall provide an incentive by way of giving a discount of up to 0.5% to customers for monthly or seasonal tickets from January 1, 2017, if payment is made through digital means.

>> Buying general, life insurance policies and renewal premiums from PSU insurers’ websites will attract 10 per cent and 8 per cent discount, respectively.

>> Two Point of Sale (PoS) machines will be given to villages with a population of 10,000 people. One lakh villages will be selected for this scheme.

>> No service tax will be charged on all digital transaction upto Rs. 2000.

>> For payments at toll plazas on national highways using RFID card/Fast Tags, a discount of 10% per cent will be available to users in the year 2016-17.

>> Public sector banks are advised that merchants should not be required to pay more than Rs. 100 as monthly rental for PoS terminals/Micro ATMs/mobile POS. This is aimed at bringing small merchants on board the digital payment eco-system.

>> Passengers buying railway tickets online shall be given free accident insurance cover of up to Rs. 10 lakh.

>> 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.

>> Central government departments and PSUs will not charge transaction fees for payments made through digital means. The State governments have also been advised to follow it.