Cabinet approves removal of surcharge, service charge on card and digital payments

Union Cabinet has given its approval for introduction of steps for promotion of payments through cards and digital means. The move is aimed at reducing cash transactions. Several short term and medium term measures have been approved for implementation by the Government Ministries, Departments and Organisations.

The infrastructure of card and digital payments is



growing, but remains modest in comparison to cash payments. Promotion of payments through cards and digital means will be instrumental in reducing tax avoidance and migration of Government payments and collections to cashless mode. The essential features of the proposals include steps for withdrawal of surcharge, service charge, convenience fee on card or digital payments currently imposed by various Government organisations and introduction of appropriate acceptance infrastructure in Government organisations.