Digital Payments India – Special Incentives On Various Transactions

By | December 9, 2016

Cashless India is the new slogan of all Indians as Govt is trying their level best to promote Digital Payments in India through various ways. After demonetization of rs 500 & Rs 1000 notes, it has become very difficult to make transactions for daily life with cash money.

So the best alternative is to Go cashless. In that scenario wallet service providers like Paytm, Freecharge etc has boosted like anything. But the ultimate benefit is always for the users and the people who are actually buying & selling as with cashless mode there is no need of carrying any cash in your wallet.

Special Incentives On Various Transactions to Encourage Digital Payments in India

Now Govt is trying to encourage digital payments in rural areas as well by offering various incentives and offers for people who are transacting through cashless ways using credit cards, wallet services etc. Here I am simply sharing the necessary steps taken by Govt of India to promote digital payments to make a perfect cashless India.

Free accidental insurance up to Rs 10 lakh on buying online ticket in railways. This will benefit nearly 14 lakh railway passengers everyday. It is expected that another 20% passengers may shift to digital payments. Nearly 11 lakh passengers per day expected to be covered under the accidental insurance scheme.

Public sector banks advised to not charge more than rs 100 per month as rental for POS terminals/micro ATMs/Mobile POS from merchants. This will benefit nearly 6.5 lakh machines by Public Sector Banks have been issued to merchants. Merchants will be benefited by lower rentals and promote digital transactions. With lower rentals, more merchants will install such machines and promote digital transactions.

No service tax on digital transaction charges/MDR up to Rs 2000 per transaction.

Discount or credit of up to 10% on the insurance premium sold through the customer portals of public sector insurance companies on the digital payment.

Central Government Department & PSUs to bear transactions fee/MDR charges on digital payments. State Governments being advised to do the same.

10% discount for toll payment on national Highways using RFID card/Fast Tags in 2016-17.

Discount of 0.75% on digital payments at central Govt Petroleum PSUs. This will benefit nearly 4.5 crore customers at petrol pumps per day. This incentive has the potential of shifting at least 30% customers to digital payments. This will reduce the cash requirement of nearly Rs 2 lakh crore per year at petrol pumps.

2 POS services will be deployed in each of 1 lakh villages with population of less than 10,000 Govt through NABARD will extend financial support.

Rural regional Banks and Cooperative Banks to issue “Rupay Kisan Cards” to 4.32 crore Kisan Credit Card holders. Govt will support this through NABARD. This will benefit farmers of one lakh village covering a total population of nearly 75 crore who will have facility to transact carelessly in their villages for their agriculture needs.
Discount of 0.5% for monthly or seasonal tickets on digital payments from 1st January 2017 on suburban railway network. This will benefit nearly 80 lakh passengers using seasonal or monthly ticket on suburban railways. As passengers will shift to digital means the cash requirement may get reduced by Rs 1000 crore per year in near future.

Do you support this initiative and dream to be a part of Cashless Bharat? Then share this article and also write your opinions here in few words below.

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