LIVE: Petrol, diesel cheaper in digital payment, says Govt

NEW DELHI: In bid to promote less-cash economy, the government today announced discount on an array of services from buying petrol to insurance and railway tickets through the digital mode and waived service tax on card transactions of up to Rs 2,000. A discount of 0.75 per cent will be offered on purchase of petrol and diesel through either credit/debit cards, e-wallets and mobile wallets. Announcing 11 decisions to promote digital transactions, Finance Minister Arun Jaitley said that online booking of railway tickets will get Rs 10 lakh accident insurance. He also announced that all those who pay toll tax through RFID (Radio-frequency identification) or FASTag procured through digital payment will get 10 per cent discount. The date for rolling out the scheme will be notified shortly, he said.

Government takes 11 steps to boost digital transactions:

• Central Govt. Petroleum PSUs will offer discount at the rate of 0.75% of the sale price to consumers making payment through digital means.
• 1 Lakh villages with population less than 10,000 to get 2 PoS machines free of cost, supported through financial inclusion fund.
• Govt. will support RRBs and Cooperative Banks through NABARD to issue “Rupay Kisan Cards” to 4.32 crore Kisan Credit Card holders
• Sub-urban railway consumers making digital payment for monthly/season tickets to get discount upto 0.5% from January 1, 2017.
• All railway passengers buying online ticket shall be given free accidental insurance cover of up to Rs. 10 lakh if digital payment is made.

• Railways to provide a discount of 5% for digital payment of paid services offered through its affiliates.
• Public Sector Insurance companies to provide incentive on digital payment of premium for new policies sold through their customer portals.
• Central Govt. Dept & PSUs to ensure that transactions charges associated with digital payment shall not be passed on to the consumers.
• PSBs to ensure that merchants should not be required to pay more than Rs. 100/month as monthly rental for PoS terminals/Micro ATMs/mobilePoS
• No service tax will be charged on digital transactions up to Rs. 2000 per transaction
• A discount of 10% will be available for using RFID card/Fast Tags making digital payments at Toll Plazas on National Highways.