Press Information Bureau
Government of India
Ministry of Finance
08-December-2016 18:20 IST
In the aftermath of the cancellation of the legal tender character of
old Rs.500 and Rs.1,000 notes, there has been a surge in the digital
transactions through use of credit/debit cards and mobile phone
applications/e-wallets etc. To further accelerate this process, the
Central Government has decided on a package of incentives and measures
for promotion of digital and cashless economy in the country.
These incentives/measures are following:
1. The Central Government Petroleum
PSUs shall give incentive by offering a discount at the rate of 0.75% of
the sale price to consumers on purchase of petrol/diesel if payment is
made through digital means.
Nearly 4.5 crore customers buy petrol or diesel at such petrol pumps
per day who can take benefit of this incentive scheme. It is estimated
that petrol/diesel worth Rs.1800 crore is sold per day to the customers
out of which nearly 20% was being paid through digital means. In the
month of November 2016 it has increased to 40% and the cash transaction
of Rs.360 crore per day have got shifted to cashless transaction
methods. The incentive scheme has the potential of shifting at least
30% more customer to digital means which will further reduce the cash
requirement of nearly Rs. 2 lakh crore per year at the petrol pumps.
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.
This will benefit farmers of one lakh village covering a total
population of nearly 75 crore who will have facility to transact
cashlessly in their villages for their agri needs.
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 sub urban
railway network shall provide incentive by way of discount upto 0.5% to
customers for monthly or seasonal tickets from January 1, 2017, if
payment is made through digital means.
Nearly 80 lakh passengers use seasonal or monthly ticket on suburban
railways, largely in cash, spending worth nearly Rs.2,000 crore per
year. As more and more passengers will shift to digital means the cash
requirement may get reduced by Rs.1,000 crore per year in near future.
5. All railway passengers buying online ticket shall be given free accidental insurance cover of upto Rs. 10 lakh.
Nearly 14 lakh railway passengers are buying tickets everyday out of
which 58% tickets are bought online through digital means. It is
expected that another 20% passengers may shift to digital payment
methods of buying railway tickets. Hence nearly 11 lakh passengers per
day will be covered under the accidental insurance scheme.
6. For paid services e.g. catering,
accommodation, retiring rooms etc. being offered by railways through its
affiliated entities/corporations to the passengers, it will provide a
discount of 5% for payment of these services through digital means.
All the passengers travelling on railways availing these services may avail the benefit.
7. Public sector insurance companies
will provide incentive, by way of discount or credit, upto 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 transactions
fee/MDR charges associated with payment through digital means shall not
be passed on to the consumers and all such expenses shall be borne by
them. State Governments are being advised that the State Governments
and its organizations should also consider to absorb the transaction
fee/MDR charges related to digital payment to them and consumer should
not be asked to bear it.
9. Public sector banks 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.
Nearly 6.5 lakh machines by Public Sector Banks have been issued to
merchants who will be benefitted by the lower rentals and promote
digital transactions. With lower rentals, more merchants will install
such machines and promote digital transactions.
10. No service tax will be charged on digital transaction charges/MDR for transactions upto Rs.2000 per transaction.
11. 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.
