Govt to promote online payment through cards and digital means

120

online_payThe Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the introduction of steps to promote payments through cards and digital means and reduce cash transactions. A number of short term (within one year) and medium term measures (within two years) have been approved for implementation by the Government Ministries/ Departments/ Organisations.

This mode of payment will be helpful in reducing tax avoidance, migration of Government payments and collections to cashless mode. It will shift payment ecosystem from cash dominated to non-cash/less cash payments.

The essential features of the proposals for promotion of payments through cards and digital means include steps for:

  • withdrawal of surcharge/service charge/ convenience fee on card/ digital payments currently imposed by various Government Departments/organisations and introduction of appropriate acceptance infrastructure in Government Departments/ organisations;
  • rationalization of Merchant Discount Rate (MDR) on card transactions and a differentiated MDR framework for some key transaction segments;
  • mandating payments beyond a prescribed limit only in card/ digital mode;
  • introduction of formulae linked acceptance infrastructure by the stakeholders of certain card products;
  • rationalisation of telecom service charges for digital financial transactions;
  • promotion of mobile banking;
  • and creation of necessary assurance mechanisms for quick resolution of fraudulent transactions and review the payments ecosystem in the country.

Get a chance to meet the Who's who of the BFSI industry. Join 3rd NBFC100 Tech Summit, New Delhi on 27th April and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.