For promoting the use of digital payments in the country, the Central Government may soon consider a 2 per cent incentive on the Goods and Service Tax rate.
This incentive will be offered on the bills up to Rs 2,000.The proposal of offering the incentive is under a discussion between Ministry of Finance, the banking regulator Reserve Bank of India (RBI), cabinet secretariat and the ministry of electronics and IT, an English daily reported.
Reportedly, the incentive will be transferred either via cash-back or discount. The basic idea behind pushing the proposal is to boost all kinds of digital payments, especially smaller transactions.
The proposal comes to the notice in the wake of declining electronic transactions over the past few months. As per the RBI reports, the number of electronic transactions inflated from 67 crore in November last year to 89 crore in March this year. However, the number reported a steep fall in the recent months.
"Exciting news! Elets Banking & Finance Post is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!
Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/
Get a chance to meet the Who's who of the Banking & Finance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.