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.

modi-gf-2

modi-gf-3

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.

modi-gf1

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.

modi-gf-4

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.

modi-gf5

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.

modi-gf-6

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)

For all the latest Business News, download Indian Express App

  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?
    Reply
    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
      2. 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
      3. 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. Load More Comments