How PM Modi's Dream of Cashless Economy can be Fulfilled

BENGALURU: Prime Minister Narendra Modi is working on handling the after-effects of his demonetisation move. He appreciates countryman for using digital ways of transactions to involve cashless economy in the system. There has been a huge surge in digital payments since the cancellation of 500 and 1000 domination notes. To accelerate digital transactions, the central government announced a few incentives for digital and cashless payments. YourStory reported about the packages announced by Government of India for the promotion of cashless economy.

The Central Petroleum Companies are instructed to offer a discount of 0.75% on the payments done my digital modes. This incentive scheme will provide benefits to more than 45Mn customers who buy diesel/petrol from such petrol pumps. The central government with the help of National Bank of Agriculture and Rural Development (NABARD) is planning to expand digital infrastructure in rural areas also. The government planned to deploy at least 2 POS devices in each of 1 Lakh villages. These machines will be installed at cooperative societies/agricultural input dealers/milk societies to smooth agriculture related transactions through digital modes.

From January 1, 2017, Indian Railways through its sub-urban railway network will provide a discount of 0.5% to the passengers travelling on seasonal or monthly tickets bought through digital modes. The passengers can also leverage the benefit of free accidental bonus of up to 10 Lakh by buying tickets online. A discount of 5% will be provided to the passengers using digital payments for the paid services offered by the railways.

Public sector insurance firms will give a discount or credit up to 8% on new life policies and 10% on the premium of general insurance policies of LIC. Customers can leverage the additional benefits by buying policies through online portals and payments. Public sector banks are advised to provide mobile POS/PoS terminals/Micro ATMs to merchants in not more than 100 per month. No service tax will be charged on transactions up to 2000. A discount of 10% will be given to the users making payments with RFID card/Fast Tags for toll at National Highways Toll Plazas.

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