Government to make cash use expensive to promote digital transaction: NITI Ayog | Latest News India - Hindustan Times
close_game
close_game

Government to make cash use expensive to promote digital transaction: NITI Ayog

New Delhi | ByIANS
Dec 16, 2016 06:54 PM IST

Kant said that the all modes of digital transactions had witnessed manifold increase since the demonetisation decision, announced on November 8.

NITI Ayog CEO Amitabh Kant on Friday said that the government had “long-term plans” to impose a cess on cash transaction in order to encourage digital transactions.

There would be no charge on digital transaction while there will be cess on cash transaction.(Representational Photo)
There would be no charge on digital transaction while there will be cess on cash transaction.(Representational Photo)

Addressing the annual general meeting of FICCI, Kant said that the all modes of digital transactions had witnessed manifold increase since the demonetisation decision, announced on November 8.

Hindustan Times - your fastest source for breaking news! Read now.

“Earlier, there was a charge of 1.5-2% on digital transaction when its volume was low. However, its volume has increased now. Since November 8 it has gone up by 316% for RuPay, 271% for e-wallets, 119% for UPI, 1,202% for USSD and 95% for POS (Point of Sale). Now, volume of digital transaction has increased, so charges on it will be low. The Merchant Discount rate (MDR) should fall,” he said.

“The government has already provided 11 different incentives (to encourage digital transactions). In the long term, the government has intention to make cash handling more expensive and digital transaction extremely cheap.

“There would be no charge on digital transaction while there will be cess on cash transaction. This is how economy will move if you want to push digital transaction.”

He emphasised that digitisation was necessary for the country to become a $10 trillion economy and sustain a 7.5% growth as it cannot afford to have a parallel economy generated by high level of cash transactions.

Kant said that the cash shortage that induced due to demonetisation of old Rs 500 and Rs 1,000 currency notes was to be ended by mid-January next year.

He added that the government was going to spend Rs 340 crore in next few months’ time to promote digital transaction.

Various incentive schemes were announced to promote digital payments such as ‘Lucky Grahak Yojana’ and ‘Digi Dhan Vyapari Yojna’, he said, while assuring that the merchants would not be harassed by tax official by way of scrutiny of the previous years of books of accounts.

Kant said about 30 crore people in the country without mobile connections will be able to do digital transaction using Aadhaar and thumb impression. He gave example of ration shops in Jharkhand, which use the Aadhaar enabled payment system.

Unveiling 'Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch Now!

Get Updates on India News, Farmers Protest Live alongwith the Latest News and Top Headlines from India and around the the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, February 23, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On