Business Mantra News
Yesterday, the 8th December, 2016 Finance Minister Mr. Arun Jaitley announced a series of measures providing incentives for consumers for turning to cashless transactions for purchase of a number of goods and services, which are as follows:
- Use of cards and e-wallets shall fetch a discount of 0.75% for purchase of petrol and diesel.
- All Railway passengers shall be covered with an accidental insurance of Rs.10.00 lakhs, if payment of tickets made on-line.
- On-line payment of catering bills, retiring room bills shall attract a discount of 5%
- Payment made on-line/digitally of monthly season tickets of urban and sub-urban trains shall also be cheaper by 0.5%
- There shall be no service tax on all digitally initiated transactions up-to Rs.2000/-
- Insurance Premia paid digitally/online from public sector insurance companies, 8% discount on life insurances and 10% discount on general insurance shall be provided.
- Point of Sales (POS) machines shall be installed in each village in India having a population of 8000 or more.
- For POS machines provide by Public Sector Banks, rent of such machines to the merchants shall not be more than Rs.100/- per month.
- NABARD shall provide Rupay Cards to all 4.32 Crore Kisan Credit Card (KCC) holders.
- 10% discount shall be available for payment of Toll at Highways digitally.
These incentives are from immediate effect.
Government expects a shift of at-least 30% of the transactions from cash to digital.
FM sir, please note that more than 26% of Indian population is illiterate and 23% are below poverty line. However, if 50% of the people of India start online/digital transactions, 30% target is achievable.
Also paying attention and preventing cyber crimes, frauds and thefts should also be the priority of the Government.