Government has announced on a package of incentives for cashless
Transactions and promotion of digital and cashless economy in the
country,” it said. Cheaper fuel, free insurance on Rail tickets and
many more. Promote cashless transactions, Finance Minister Arun Jaitley
today announced of incentives for those opting digital mode of payment
for various services.
GOI announces Incentives/ Package for Promotion of Digital and Cashless Transactions/ Economy
(i.e. use of credit/ debit cards, mobile phone applications/ e-wallets etc.)
These incentives/measures are following:
VERSION – I
Finance Minister Arun Jaitley made 11 key announcement
Petrol/ Diesel at Discount of 0.75% against digital Payments
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.
Expansion of Digital Payments Infrastructure in Rural Areas
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
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
Issuance of Rupay Kisan Cards to 4.32 Crore KCC Holders
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.
Sub-urban Railway to offer discount of 0.5% for monthly/ season Tickets
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.
80 lakh passengers use seasonal or monthly ticket on suburban railways,
largely in cash, spending worth nearly Rs.2,000 crore per year.
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.
Free Accidental Insurance of Rs. 10 Lacs for Rail Passengers buying online Tickets
v) All railway passengers buying online ticket shall be given free accidental insurance cover of upto Rs. 10 lakh.
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
Hence nearly 11 lakh passengers per day will be
covered under the accidental insurance scheme.
IRCTC Services at 5% Discount against Digital Payments
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.
GIC and LIC to give 10% and 8% Discount against Digital Payments
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
MDR Charges for Digital Payments to be borne by Concerned Deptt
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.
Cap of Rs. 100 on Monthly Rental for Card Swipe Machines/ Terminals
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.
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.
Service Tax Waiver on Merchants Charges paid to Banks
x) No service tax will be charged on digital transaction charges/ MDR for transactions upto Rs.2000 per transaction.
10% Discount at Toll Plazas
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
VERSION – II
Following are the measures aimed at expediting digital transactions.
1.Digital payments for buying petrol and diesel will get a 0.75 per cent
discount. Payments through digital mode availing services such as
catering, accommodation, and retiring room in railways will get five per
railway network shall provide an incentive by way of giving a discount
of up to 0.5% to customers for monthly or seasonal tickets from January
1, 2017, if payment is made through digital means.
general, life insurance policies and renewal premiums from PSU
insurers’ websites will attract 10 per cent and 8 per cent discount,
4.Two Point of Sale (PoS)
machines will be given to villages with a population of 10,000 people.
One lakh villages will be selected for this scheme.
5.No service tax will be charged on all digital transaction upto Rs. 2000.
payments at toll plazas on national highways using RFID card/Fast Tags,
a discount of 10% per cent will be available to users in the year
7.Public sector banks are advised
that merchants should not be required to pay more than Rs. 100 as
monthly rental for PoS terminals/Micro ATMs/mobile POS. This is aimed at
bringing small merchants on board the digital payment eco-system.
8.Passengers buying railway tickets online shall be given free accident insurance cover of up to Rs. 10 lakh.
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.
government departments and PSUs will not charge transaction fees for
payments made through digital means. The State governments have also
been advised to follow it.