After demonetization of high denomination notes government is continuously trying to push digital transactions. It has been seen with the various steps taken for this push like 14444 Helpline, creating cyber security operation cell, creating technical cell by RBI called as ReBIT. With the great move for digital transactions it has also launched BHIM (Bharat Interface for Money)
Now the next task will be to promote this apps and ways of payment. To promote digital payments, the upcoming budget may offer incentives to companies which manufacture equipment like PoS machines and micro ATMs. According to sources, the government may cut or eliminate excise duty on manufacturing of micro ATMs, finger print readers, biometric cards and PIN cards. Further, import duty may also be reduced on components used in the manufacturing of micro ATMs, they said, adding the excise duty exemption given by the government on these machines may be further extended.
Currently also Government has given various discounts for digital payments on various products like Petroleum products, Insurances etc. It also announced excise duty exemptions till March 31, 2017.
Committee on Digital Payments
The ‘Committee on Digital Payments’, headed by former finance secretary Ratan P Watal, had suggested incentives to encourage digital payments in India. It had suggested withdrawal of all charges levied by government departments and utilities on digital payments and bear the cost of such transactions and mandate government departments and agencies to provide option to consumers to pay digitally. Currently India is dependent heavily on import of these items.