Budget 2017 - Govt Shows Favor On E-Payments

By : 02-Feb-2017
Budget 2017 Govt promotes cashless transactions

After demonetization, the central government has shown favor towards e-payments than cash payment mode. On Wednesday, during budget session meet, the government even wants the public to continue digitalization by lifting up various duties on these tools. 

Finance Minister Arun Jaitley said, “In order to encourage cashless transactions, I propose to exempt BCD, Excise/CV duty and SAD on miniaturized POS card reader for m-POS, micro standard version 1.5.1, fingerprint readers/scanners and iris scanners. To increase domestic manufacturing of the devices, I want to propose exemption on parts and components.”

Another step by the central government is for pushing cashless payments is Aadhaar Pay. “With this app, people would be able to make cashless payments and this system would be launched soon,” said Finance Minister. He further said that this approach is to focus mainly on rural and semi-urban areas through post offices, banking correspondents, and others.

“This mission is to target of 2,500 crore cashless transactions in this 2017-18 by UPI, USSD, Aadhaar Pay, IMPS and debit cards. All the Indian banks targeted to come up a new PoS terminal by March 2017. They are also encouraged to go with 20 lakh Aadhar based Pos by September 2017,” he said. 

“Inducing of Aadhaar Pay can excel digital economy and probably, India could be a global exemplar in the digital arena. Focus on rural and semi-urban areas will further enhance digitalization”, said Neel Ratan.

In this budget, the government has withdrawn the service charges levied by IRCTC on online train tickets booking.

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