Government took steps to reduce cost of digital transactions: Finance Minister

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Finance_Minister_Arun_Jaitley
Finance Minister Arun Jaitley

August 26, 2017

Finance Minister Arun Jaitley told reporters that the Central Government and the Reserve Bank of India (RBI) have taken various steps to bring own the cost of digital transactions. Mr. Jaitley was attending an event to inaugurate 100 digital villages, 100 ATMs and 100 branches of Vijaya Bank, as reported by the Economic Times. He also said that the government also provided a lot of incentives to people so that they are motivated to opt for digital modes of payment.

The Finance Minister further added that cash transactions are insecure and so digitisation should reach villages as well.

“One of the great challenges before us is to further popularise cashless tools because cash is always insecure. In the long run it neither helps society nor individuals. Therefore, for greater digitisation, you need more touch points, more ATMs and more banks. And certainly, the penetration has to go down to villages,” Mr. Jaitley said.

The government is also exploring other proposals to promote digital payments while discouraging cash payments. One of the proposal under consideration is offering an incentive of 2% incentive on applicable GST rate for digital payments where the bill is up to Rs.2,000. The incentive may be offered either in the form of an instant discount or cashback.

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