Government's digital push: Top incentives for cashless transactions -TOI

Here are the highlights of Finance Minister Arun Jaitley's press briefing:

1.

The Government Petroleum PSUs shall give incentive by offering a discount at the rate of 0.75 per cent of the sale price to consumers on purchase of petrol or diesel if payment is made through digital means.

2.

To expand digital payment infrastructure in rural areas, the 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 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.

The government will provide 2 POS or Point of Sale machines for free to each village that has a population of over 10,000. Around 75 crore people will get access to these machines. 4.32 crore villagers who have Kisan credit cards will be issued 'RuPay Kisan cards' by NABARD.

5.

Suburban train passengers who pay digitally for their monthly/seasonal tickets will get a 0.5per cent discount. This discount will be applicable from January 1, 2017.

6.

Railways passengers who purchase tickets online will be entitled to an accidental insurance coverage of Rs 10 lakhs for free.

7.

Passengers purchasing tickets online will also get a 5 per cent discount on accommodation, catering and retiring room at Railway Stations.

8.

No service tax will be charged on transactions of up to Rs 2,000 if a card is used.

9.

People paying general insurance premiums will get a 10per cent discount and 8per cent discount for life insurance if the payment is made online.

10.

Government bodies will not charge a transaction fee for digital payments. People who pay digitally and use Fast Tags and RFID facilities at toll plazas on national highways will get a 10 per cent discount.

11.

Excessive cash can also lead to malpractices, and thus it is being discouraged. The shift to a 'less-cash' economy has to be achieved.The cost of these discounts will be borne by the concerned institutions. Dealing in cash brings its own costs and burdens, so this will be a welcome change.