FinMin to incentivise credit, debit card usagehttps://indianexpress.com/article/business/business-others/finmin-to-incentivise-credit-debit-card-usage/

FinMin to incentivise credit, debit card usage

The Union Budget had proposed to raise funds for railways, roads and irrigation sectors by issuing tax-free infrastructure bonds.

You may have to use your to pay a bill of over Rs 5,000 while eating out at a four or five star hotel. This is one of the measures that the finance ministry is considering as it tries to discourage cash transactions.

“We are looking at incentivising banks, sharing part of the cost of point of sale machine, etc,” said finance secretary Rajiv Mehrishi on Monday, adding that the ministry will set up a committee to suggest measures to incentivise credit or debit card transactions.

The move follows finance minister Arun Jaitley’s announcement in the Budget 2015-16 that transactions in cash would be discouraged to curb flow of black money.

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The finance ministry will also decide in two months on quantum of funds that could be raised by the companies in railways and road sector through tax-free infrastructure bonds. “Tax-free infra bonds are meant for road and rail sector. The limit will be decided by March or April,” said the finance secretary.

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The Union Budget had proposed to raise funds for railways, roads and irrigation sectors by issuing tax-free infrastructure bonds.

Mehrishi said that the higher spend of Rs 70,000 crore by public sector units in 2015-16 would be targetted at constructing roads, railways, Pradhan Mantri Gram Sadak Yojana, National Investment and Infrastructure.