Government promotes digital payments by the public
MAS Team | 10 December 2016
The government has announced measures to encourage digital payments, following its decision to scrap high-value banknotes. This is part of its war against black money. These measures include:
(a) 0.75% discount on digital purchases of petrol and diesel from government owned outlets
(b) 0.5% discount for digital purchase of monthly and seasonal tickets for suburban rail travel
(c) Monthly rental on 650,000 point of service (PoS) terminals provided by public sector banks with an upper limit of Rs100.
(d) Free accident insurance cover of Rs10 lakh on online purchase of rail tickets.
(e) Rupay Kisan cards for Kisan credit card holders
(f) Two PoS machines each for villages with population of less than Rs10,000.
(g) Waiver of service tax on digital transaction changes for transactions upto Rs2,000.
(h) No transaction fee and merchant discount rate for payments made to central government departments and public sector companies
(i) 10% discount on online purchase of general insurance policy from state-owned insurers and 8% discount for life insurance policy
(j) 10% discount on toll payments using RFID card and fast tags.
(k) 5% discount on digital payments on railways for catering, accommodation etc.