Cheaper fuel, free insurance on Rail tickets and many more: Govt announces incentives for cashless transactions

Finance Minister Arun Jaitley today announced a slew of incentives for those opting digital mode of payment for various services.
cashless transaction, Arun Jaitley Source: TWITTER
India TV Business Desk New Delhi December 09, 2016 11:20 IST

In a bid to promote cashless transactions, Finance Minister Arun Jaitley today announced a slew of incentives for those opting digital mode of payment for various services. 

"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," a statement by the Ministry of Finance Ministry said. 

"The Central Government has decided on a package of incentives and measures for promotion of digital and cashless economy in the country," it said. 

The announcement was made by Jaitley who was addressing the media in North Block at the occasion of completing a month of the demonetisation initiative. 

Here are 11 important announcements made by Jaitley: 

1) Central Govt. Petroleum PSUs will offer discount at the rate of 0.75% of the sale price to consumers making payment through digital means.

2) One Lakh villages with population less than 10,000 to get 2 PoS machines free of cost, supported through financial inclusion fund.

3) Govt. will support RRBs and Cooperative Banks through NABARD to issue “Rupay Kisan Cards” to 4.32 crore Kisan Credit Card holders.

4) Sub-urban railway consumers making digital payment for monthly/season tickets to get discount upto 0.5% from January 1, 2017.

5) All railway passengers buying online ticket will get free accidental insurance cover of upto Rs. 10 lakh.

6) Railways to provide a discount of 5% for digital payment of paid services like catering, retiring rooms, offered through its affiliates.

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) Central Govt. Dept & PSUs to ensure that transactions charges associated with digital payment shall not be passed on to the consumers.

9) Public Sector Banks to ensure that merchants should not be required to pay more than Rs. 100/month as monthly rental for PoS terminals/Micro ATMs/mobile PoS.

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.

These schemes will be effective from January 1 2017.

“Dealing in cash has economic as well as in-built cost in a democratic set-up. So the government is promoting payment by credit, debit cards and e-wallets,” Jaitley said. 

"4.5 crore consumers buy petrol and diesel worth Rs 1,800 ore daily. In one month, digital payments have doubled to 40 pc," he said.

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