Union Budget 2017: BharatNet, more PoS machines, and digital payments in focus

The Union budget 2017-2018 included some major announcements for digital payments, Bharat Net project.

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Budget 2017 Digital India highlights: High-speed broadband on optical fibre internet in villages to more PoS machines for digital payments. (Representational Image. Source: Reuters)

The Union budget 2017-2018 included some major announcements, which will boost the government’s project of Digital India and increase incentives for digital payments in the country. First up, the government announced allocation of up to Rs 10,000 crore Bharat Net project in the 2017-2018 Union Budget.

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High-speed broadband on optical fibre will be available in over 1.5 lakh gram panchayats with hotspots and access to digital services at low tariffs, Finance Minister Arun Jaitley said today. A ‘Digi Gaon’ initiative will also be launched to provide telemedicine, education and skills through digital technology, Jaitley said in his Budget speech.

“Under the Bharat Net, optical fibre has been laid in 1,55,000 kms. I have stepped up allocation for Bharat Net project to Rs 10,000 crore in 2017-18 and by the end of 2017-18, high speed broadband on optical fibre will be available in more than 1.5 lakh gram panchayats with hotspots and access to digital services at low tariff,” Jaitley said.

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The minister said the recent spectrum auctions have removed the spectrum scarcity in the country. “This will give a major fillip to mobilising broadband and Digital India, for the benefit of people living in rural areas,” he pointed out.

The government also announced two incentives schemes to boost digital payments via BHIM app in India. Jaitley said BHIM already has 125 lakh people using the app, and they will now offer referrals to individuals as well as cashback to merchants who use the payments app.

Additionally the government plans to bring Aadhaar-based payments facility for merchants. The government has allocated Rs 2,500 crore benefits for UPI based payments and other digital payments.

Also read: Union Budget 2017: Jaitely announces two new incentives to promote BHIM app

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Finance Minister also said they expect to increase PoS (Point of Sales) terminals in the country to 10 lakh units for this financial year, and there will be 20-lakh Aadhaar-based payment points. He also announced exemptions to this sector.

“I propose that excise duty be exempted on various point of sale (POS) machines and iris readers to encourage digital payments,” during his speech. Further the government will set up a payment regulatory board in RBI to regulate electronic payments.

For IRCTC users there is good news: The service charge n e-tickets booked through IRCTC will be withdrawn.

With PTI inputs