Govt annouinces several incentives on payments through digital modes

Government announced several incentives on payments made through digital modes. Addressing media in New Delhi, Union Finance Minister Arun Jaitley said, petroleum companies will offer a discount of 0.75 percent on diesel and petrol to consumers who pay through digital means.

Mr Jaitley also said, 0.5 percent discount will be given to people who will buy monthly seasonal tickets in the Suburban railway networks through digital payment mode. It will be effective from 1st of next month and will start with the Mumbai suburban railways. 

The Minister said, passengers will get 10 lakh rupees free accident insurance cover on booking of Railway ticket through online mode. He said, payments through digital mode for railways catering, accommodation, retiring room will also attract 5 percent discount.

Mr Jaitley also said, purchasing of new insurance policy of PSUs online will be cheaper as people will be get 10 percent discount on General Insurance and 8 percent discount on life Insurance policies.The Finance Minister said, a discount of 10 per cent will be available to users for payment of toll at Toll



Plazas on National Highways using RFID card and Fast Tags. He directed government departments and PSUs to ensure that transaction, MDR charges are not borne by customers for public dealings. 

Mr Jaitley also said, to expand digital payment infrastructure in rural areas, the Government through NABARD will extend financial support to eligible banks for deployment of two Point of Sale (PoS) devices each in 1 Lakh villages with population of less than 10,000.

The Minister said, the Government through NABARD will also support Rural Regional Banks and Cooperative Banks to issue Rupay Kisan Cards to over 4 crore 32 lakh Kisan Credit Card holders to enable them to make digital transactions at POS machines and ATMs.

Mr Jaitley also said, Public sector banks are advised that merchant should not be required to pay more than 100 rupees per month as monthly rental for PoS terminals, Micro ATMs and mobile POS from the merchants to bring small merchant on board the digital payment eco system.

The Minister said, the moves are aimed at cutting out cash transactions and implement cashless economy.