PM Modi highlights benefits of discounts on digital payments

The government on Thursday announced a slew of measures, including discounts on digital payments on purchase of petrol, railway ticket and insurance policies, to incentivise cashless payments.

Updated: December 9, 2016 12:08 pm
modi, pm modi, digital payment, cashless transaction cashless economy, modi, demonetisation, online payment, card payment Prime Minister Narendra Modi

The government on Thursday announced a slew of measures, including discounts on digital payments on purchase of petrol, railway ticket and insurance policies, to incentivise cashless payments. It also waived service tax for payments up to Rs 2,000 made through cards and decided to do away with transaction fee for payment to central government departments and PSUs. Prime Minister Narendra Modi too shared graphic details of the announcement highlighting the benefits of the new decision.

Addressing media on the one month anniversary of the demonetisation decision, Finance Minister Arun Jaitley announced that a discount of 0.75 per cent will be offered on purchase of petrol and diesel through either credit/debit cards, e-wallets and mobile wallets. Similarly, 10 per cent and 8 per cent discount will be offered in case of general and life insurance for buying new policy or paying premium online via PSUs websites.

WATCH VIDEO | Find Out What PM Narendra Modi Told Cabinet Over Demonetisation Decision

Jaitley also announced that monthly and seasonal suburban railway tickets purchased through digital mode will get 0.5 per cent discount from January 1. Online booking of railway tickets will get up to Rs 10 lakh of free accidental insurance cover. Those using digital mode to pay for railway catering, accommodation, retiring room will be entitled to discount of 5 per cent.

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The public sector banks have been advised that merchants should not be required to pay more than Rs 100 as monthly rental for PoS terminals/Micro ATMs/mobile POS so as to bring small merchants on board the digital payment ecosystem.

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In order to expand digital payment infrastructure in rural areas, the government had directed NABARD to extend financial support to eligible banks for deployment of 2 POS devices each in 1 lakh villages with population of less than 10,000.

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The finance minister said that as much as Rs 1,800 crore worth of petrol and diesel is bought every day by nearly 4.5 crore customers and just 20 per cent of it is through cards. The government, he said, is targeting at least 70 per cent of the daily sales to be through cards or e-wallets/mobile wallets to reduce cash exchange at petrol pumps by nearly Rs 2 lakh crore annually.

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On government exempting card transactions below Rs 2,000 from service tax, he said, there will be a revenue implication as 70 per cent of the transaction currently are of less than that threshold.

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The feedback from the industry is that the movement to the digital economy is “quite rapid,” Jaitley said, adding “this will certainly make India into a less cash economy.”

Rural Regional Banks and Cooperative Banks will 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.

Jaitley said 58 per cent out of the nearly 14 lakh railway tickets purchased everyday are bought online. The discount offered now is expected to add another 20 per cent passengers to digital payment methods. “Hence nearly 11 lakh passengers per day will be covered under the accidental insurance scheme,” he said.

Additionally, 5 per cent discount on payment through digital means would be given on paid services like catering, accommodation and retiring rooms.

Public sector insurance companies will provide incentive, by way of discount or credit, up to 10 per cent of the premium in general insurance policies and 8 per cent in new life policies of Life Insurance Corporation (LIC) sold through the customer portals, in case payment is made through digital means.

The Finance Minister said the central government departments and central PSUs will ensure that transactions fee/MDR charges associated with payment through digital mean shall not be passed on to the consumers and all such expenses shall be borne by them.

State governments are being advised that they and their organisations “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”, he said.

(With inputs from PTI)

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  1. B
    Bhavyesh Dabhi
    Jan 10, 2017 at 6:04 am
    I took LIC policy in 2013 and I need to make premium this month. Shall I get 8% discount if I pay premium via net banking or debit/credit card?
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    1. M
      Moses Babu
      Feb 1, 2017 at 3:29 am
      Hi my dear modi Ji sab your very great in India pm always you only come pm I pray for God you and your family Ji I'm Indian I need help all young people please give 500000 collect to emi base 5000 for business for purpose no one giving money sir my father dead fast 30 years ago my only work now I'm working I getting monthly 10000 only not enough please help not me only all Indian men and women young people please you my father I love you always
      Reply
      1. S
        Sandhya
        Dec 9, 2016 at 9:40 am
        As always, great ideas for great savings... Hats off to you PM Sir.
        Reply
        1. V
          Vidhu
          Dec 9, 2016 at 3:16 am
          Since last 1 month, each household is engaged in managing his/her monetary affairs only. This madness must stop now.
          Reply
          1. D
            Dhanasekaran Balasubramanian
            Dec 8, 2016 at 7:21 pm
            these s are closing their eyes about present situation everybody is starving for cash. like king nero playing violin when rome was on fire they are playing with people carelessly.
            Reply
            1. D
              Dhanasekaran Balasubramanian
              Dec 8, 2016 at 7:20 pm
              these s are closing their eyes about present situation everybody is starving for cash. like king nero playing violin when rome was on fire.
              Reply
              1. D
                dd
                Dec 8, 2016 at 8:54 pm
                Nice move. It will improve ground situation.
                Reply
                1. D
                  Deepak Asawa
                  Dec 9, 2016 at 9:52 am
                  Good steps by government.
                  Reply
                  1. D
                    Deepak Asawa
                    Dec 9, 2016 at 9:49 am
                    Very good steps taken by Government. More and more Cash transactions leads to corruption. In a country of 125 crore people only 4.5 lakh people pay tax above 20 lakh income. It is hard to believe that in India only 4.5 lakh people earn more than 20 lakhs. This is only because of cash transactions.
                    Reply
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                      Dr Raghumoni
                      Dec 8, 2016 at 6:32 pm
                      So Mr FM and Mr PM. If someone fills petrol woth Rs 200 he/she gets Rs 1.5 lt;br/gt;Wow!!lt;br/gt;If you use Paytm's philosophy please use their discount rates too. 10% and more.
                      Reply
                      1. A
                        Ajay
                        Dec 8, 2016 at 5:34 pm
                        As if govt is giving discounts from own pocket !!
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                        1. G
                          Gurvinder
                          Dec 8, 2016 at 6:17 pm
                          Ambani and Adanis can handle country better !!
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                          1. M
                            M.A HAMEED
                            Dec 8, 2016 at 7:44 pm
                            Is this possible all the pm saying but nothing improving on ground .. stop games of rich industrialist favourite government.. first buy all stock of farmers from the money which store in banks then only life will improve
                            Reply
                            1. K
                              KIRAN
                              Dec 8, 2016 at 10:22 pm
                              Nice Move.lt;br/gt;lt;br/gt;Reading though the comments, found that out that some educated S are still starving like street dogs for cash, it make sense to say if uneducated or people in villages or people in remote areas are suffering.... but I don't understand why well educated also want to that much cash. lt;br/gt;lt;br/gt;They must be worried because they cannot generate black money, if every one goes cashless,lt;br/gt;lt;br/gt;We are starting from many many ears for development and to kill corruption. But we could not win.lt;br/gt;Many countries proved that going digital wins over corruption.lt;br/gt;lt;br/gt;We cannot win war without pain, instead of blaming and barking..... help the starving people by finding new ways to overcome the current situation, go forward with positive atude.lt;br/gt;lt;br/gt;only less than 10% of the people are paying tax rest of them are avoiding tax in different ways.lt;br/gt;lt;br/gt;if you are one of that 10% then use your brain to understand that 90% of the people are using benefits provided by the government from your tax money to and enjoying their life. you are working hard all the life.lt;br/gt;lt;br/gt;if you are one of that 90% then we want you to move to 10% category.lt;br/gt;lt;br/gt;we can understand about the people who earn less than Rs 500/- per day. we don't believe you are in that category, if you are in that category, you will hard working under the hot sun. but you are sitting in front of internet and writing comments and reading these comments.lt;br/gt;lt;br/gt;Don't fool yourself and try to fool us.
                              Reply
                              1. K
                                KIRAN
                                Dec 8, 2016 at 10:38 pm
                                Request for all the people who support cashless society.lt;br/gt;I am not big fan of any political parties. but i am big fan of cash less society.lt;br/gt;lt;br/gt;Govt. is doing their best to push for cash less society. (what are we doing? can we do something more?) yes, we can do and we can do more.lt;br/gt;lt;br/gt;this is exactly what i did.lt;br/gt;Tried to convince my house maid and milk wala to accept payments through digital.lt;br/gt;Initially they have rejected it and after some discussion they convinced but skeptical.lt;br/gt;lt;br/gt;So I offered 2% extra for next 6 months, if they accept through digital, and they agree for that.lt;br/gt;It does not cost too much for us when compared with long term benefits that we get from the society.lt;br/gt;lt;br/gt;Right now we have 86% cash and 14% digital.lt;br/gt;lt;br/gt;We cannot achieve 100% based considering the number of uneducated and network issues we have in india.lt;br/gt;Cant we achieve 50%? yes, we can. at-least we should try before giving up.lt;br/gt;lt;br/gt;Thanks for all your support.lt;br/gt;Go cashless.
                                Reply
                                1. M
                                  M. AHMAD
                                  Dec 8, 2016 at 6:08 pm
                                  HE HAS ALSO HIGHLIGHTED THE BENEFIT TO BE IN QUEUES. ONE BENEFIT IS THAT YOU DIE IN QUE PEACEFULLY. RESULTANT MORE THAN 80 POOR INDIAN PEOPLE DIED IN FRONT OF BANK IN QUEUES.
                                  Reply
                                  1. M
                                    Muneef
                                    Dec 9, 2016 at 12:09 am
                                    THIS MO.THER FU@CKER IS NOW PLAYING WITH PEOPLE MIND.lt;br/gt;FIRST THIS B@STARD SAID HE IS AFTER BLACK MONEY.lt;br/gt;NOW THIS SON OF A BIT.CH SAYS GO DIGITAL AND CASHLESS.lt;br/gt;WHAT HE IS UPTO?lt;br/gt;WHY HE IS HARING COMMON PEOPLE AND WHY SHOULD WE GO CASHLESS?lt;br/gt;ARE WE NOT LIVING IN A DEMOCRACY?lt;br/gt;THIS TYPE OF STUPID THING HAS HAPPENED FOR THE FIRST TIME IN INDIAN HISTORY AND TO SOME EXTENT IN THE WORLD.lt;br/gt;ALL AROUND THE WORLD PEOPLE ARE LAUGHING AT US FOR THIS STUPID ACT OF THIS UNEDUCATED PM.
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                                      O.P. Mathur
                                      Dec 17, 2016 at 8:36 am
                                      The bankers are charging Surcharge on use of Debit card from the common man for purchase of petrol etc .which is nothing but harment to the public. This is Govt cash less policy
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                                        Dan Shaw
                                        Dec 11, 2016 at 3:50 am
                                        A progressive govt. is always thinking about ways to improve for tje people. Thanks.
                                        Reply
                                        1. R
                                          RK Singh
                                          Dec 10, 2016 at 12:20 pm
                                          when it is suppose to going to be implemented?
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                                            roopkumar balani
                                            Dec 8, 2016 at 6:30 pm
                                            what about the places we have powercuts,how you are going to use these machines.
                                            Reply
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