Government announces sops to promote digital payments

NEW DELHI: Admitting that there are visible and hidden costs in reducing cash volume in the economy, the government on Thursday announced a series of eleven measures designed to increase the pace of digital payments towards ushering in a cashless economy. Among the measures, payment by card for petrol and diesel will enjoy a discount of 0.75 per cent, Finance Minister Arun Jaitley told reporters here. He said that in one month since the demonetisation of high value currency on November 8, the percentage of digital payments at petrol vends has gone up from 20 per cent to 40 per cent. Customers will get a higher discount on digital payment as all central undertakings will ensure that the transaction fee and merchant discount rate (MDR) charges are waived on such payments, Jaitley said. Suburban railway monthly and season tickets bought through digital payment will get a 0.5 per cent discount, effective from January 1, 2017, beginning with the Mumbai suburban railway network. Jaitley also announced that online payment for public sector insurance companies (life insurance and general insurance) will get 10 per cent discount for general insurance and 8 per cent discount for life insurance for new policies sold.