Announcements made by the Centre to Promote Digital Transactions in the country

Finance Minister, Mr. Arun Jaitley announced 11 decisions on December 8, 2016 to promote digital transactions. These are:

  1. A discount of 0.75 per cent will be offered on purchase of petrol and diesel through either credit/debit cards, e-wallets or mobile wallets.
  2. 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.
  3. Monthly and seasonal suburban railway tickets purchased through digital mode will get 0.5 per cent discount from January 1.
  4. Online booking of railway tickets will get Rs 10 lakh accident insurance.
  5. Those using digital mode to pay for railway catering, accommodation, retiring room will be entitled to discount of 5 per cent.
  6. Public dealings with government departments and PSUs through digital mode will be free of transaction fee and MDR charges.
  7. Also credit/debit card transactions up to Rs 2,000 will be exempt from service tax.
  8. The minister further said 10 per cent discount will be available on use of digital mode for paying for RFID or fast-tags for highway toll.
  9. To expand digital payment infrastructure in rural areas, the Central Government through NABARD will extend financial support to eligible banks for deployment of 2 POS devices each in 1 Lakh villages with population of less than 10,000. 
  10. The Central Government through NABARD will also support Rural Regional Banks and Cooperative Banks to issue “Rupay Kisan Cards” to 4.32 crore Kisan Credit Card holders.
  11. Public sector banks are advised that merchant should not be required to pay more than Rs. 100 per month as monthly rental for PoS terminals/Micro ATMs/mobile POS from the merchants to bring small merchant on board the digital payment eco system.

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