Arun Jaitley announces slew of measures to promote digital payments

December 9, 2016

New Delhi, Dec 9: A month after Rs 500 and Rs 1000 notes were demonetised, Union Finance Minister Arun Jaitley on Thursday announced a slew of measures to promote the use of digital payments.

ArunThe Finance Ministry announced a total of eleven measures, which it described in detail in a statement released today.

Petrol, diesel purchases

At a press conference held here, Arun Jaitley announced a 0.75 per cent discount on purchases of petrol and diesel (at Central Government Petroleum PSUs) using credit or debit cards, e-wallets and mobile wallets.

Jaitley explained that the government is targeting at least 70 per cent of daily sales to be through cards or e-wallets or mobile wallets, to reduce cash exchange at petrol pumps by nearly Rs 2 lakh crore annually.

On whether such discounts will be provided by the private sector, he said, "it is PSUs which have taken this decision, the private sector has to decide in the world of competition. They are free to sell costlier petrol and face the consequences of the market."

Incentives for rail passengers

People buying monthly or seasonal tickets in suburban railway networks through digital modes will get a 0.5 per cent discount, Jaitley added.

This measure, he said, will be effective from January 1 next year, and the Mumbai suburban railways will be the first to implement it.

He added that passengers who book railway tickets online will receive free accidental insurance cover worth Rs 10 lakh, and that the Railways will provide a discount of 5% on digital payments for railway catering, accommodation, and retiring rooms.

58 per cent out of the nearly 14 lakh railway tickets purchased everyday are bought online. The discount offered now is expected to add another 20 per cent passengers to digital payment methods, Jaitley explained.

"Hence nearly 11 lakh passengers per day will be covered under the accidental insurance scheme," he said.

Public dealings with (central) government departments and PSUs through digital mode will be free of transaction fees and Merchant Discount Rate (MDR) charges, the Finance Minister added.

State Governments, on their part, are being advised that they - and their organisations - should also consider absorbing transaction fees and MDR charges related to digital payments made to them, a Finance Ministry statement said today.

Meanwhile, Public Sector Banks will ensure that merchants don't need to pay more than Rs. 100 per month as monthly rental for Point of Sale terminals, micro ATMs, and mobile Point(s) of Sales, the ministry said.

In addition, public sector insurance companies will "provide incentive(s), by way of discount or credit, upto 10% of the premium in general insurance policies and 8% in new life policies of Life Insurance Corporation sold through the customer portals, in case payment is made through digital means," it added.

RuPay Kisan cards, Point of Sale machines for villagers; discounts on RFID, Fast Tag payments

Arun Jaitley today announced that 4.32 crore villagers who have Kisan credit cards will be issued 'RuPay Kisan cards' by the National Bank for Agriculture and Rural Development.

In addition, two point-of-sale machines will be provided to every village with a population of upto 10 lakh, and 1 lakh villages will be selected for this scheme.

The machines "are intended to be deployed at primary cooperative societies, milk societies or agricultural input dealers to facilitate agri-related transactions through digital means," the Finance Ministry statement said.

This will benefit farmers of one lakh village covering a total population of nearly 75 crore, it added.

Finally, a 10 per cent discount will be provided on payments made using RFID or Fast Tags for at Toll Plazas on national highways. This measure will be effective till the end of March 2017, PTI reported.

In addition to these measures, it was announced earlier today that credit and debit card transactions worth up to Rs 2,000 will be exempt from service tax.

Against the backdrop of demonetisation, the Centre is aggressively promoting digital mode of payments to make the economy becomes less dependent on cash transactions.

"As of November 8 excessive amount of cash and a very very limited amount of digital transaction. There is a cost of transacting in cash and that cost of transacting in cash has to be borne by the economy, it is also be to borne by the political system," Arun Jaitley said today.

"These are costs which are visible, there are cost(s) which are invisible. Excessive cash can also lead a lot of malpractices and therefore in the long run we are using this also as an opportunity to move towards digitisation," he said.

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Agencies
May 17,2020

New Delhi, May 17: With the highest-ever spike of close to 5,000 cases in the past 24 hours, the COVID-19 count in India has crossed 90,000 on Sunday.

With an increase of 4,987 COVID-19 cases being reported in the last 24 hours, the count has reached 90,927, according to the Union Ministry of Health and Family Welfare.

The total number of active cases in the country stands at 53,946 today, while 2,872 deaths have been recorded due to the infection so far, with one patient having migrated. 120 deaths were reported in the last 24 hours.

However, on the positive side, close to 4,000 patients have also been cured and discharged in the past 24 hours, taking the tally of cured patients to 34,108.

With 30,706 confirmed cases, Maharashtra remains the worst-affected by the infection in the country.

It is followed by Gujarat and Tamil Nadu, with 10,988 and 10,585 cases, respectively.
The national capital, with 9,333 cases, is also one of the regions which is badly affected by the infection.

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Agencies
July 13,2020

Jaipur, July 13: Amid a deepening political crisis in Rajasthan where the number 2 leader of the Congress party Sachin Pilot has revolted, over 200 Income Tax (I-T) sleuths raided the residences and properties of two of Chief Minister Ashok Gehlot’s close confidants.

The Income Tax department has carried out searches at over a dozen locations linked to Congress leader Dharamender Rathore as well as jewellery firm owner Rajiv Arora, both of whom are considered close to Gehlot.

Officials said that the raids that are underway in Jaipur, Kota, Delhi, and Mumbai were done after a complaint of tax evasion was made. Under the scanner, they said, are transactions that were made outside the country.

The curious timing of the Income Tax department’s action against Gehlot’s aides has made the Congress accuse the sleuths of acting on the behest of the BJP.

Congress spokesperson Randeep Singh Surjewala tweeted: “After all, BJP's lawyers came on the field. The Income Tax Department started raids in Jaipur. When will ED arrive?”

The Congress is facing a cliffhanger in Rajasthan after the open rebellion by deputy chief minister Sachin Pilot, who on Sunday night claimed that he had the support of 30 MLAs and that Gehlot was leading a minority government in the state.

However, Congress leader Avinash Pande on Monday said 109 MLAs have signed a letter of support to the chief minister, well above the majority mark of 100. The party has issued a whip to all the MLAs, asking them to attend the Congress Legislature Party meeting at 10.30 am. 

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Agencies
July 21,2020

The Retailers Association of India (RAI) has said that ad hoc lockdowns by state governments are impacting the businesses of already-stressed retailers, along with hurting the economic revival of the country.

In a statement, the body of the organised retail industry said that the long road to recovery for the Indian retail industry continues to meet stumbling blocks with numerous restrictions being imposed at the state and local levels.

"Total lockdowns in some places and limited operational hours and days in several others are creating setbacks for retailers as the already stressed retail businesses are getting further interrupted and in turn, dampening consumer sentiment," it said.

According to RAI, although the intentions are that of citizen safety and social distancing, the recent instances of local lockdowns and ad hoc restrictions being imposed in Uttar Pradesh, Maharashtra, Andhra Pradesh and Karnataka are having a distressing impact on retail businesses.

Retailers are already facing huge setbacks in terms of payment of wages and rentals due to very low sales of about 40 per cent as compared to last year, thanks to the extended lockdown, it said.

Contesting the restrictions on operating hours, Sandeep Kataria, CEO, Bata India said: "Restricted shopping time can lead to unnecessary overcrowding of stores, which is unfavourable towards the personal safety of both store staff and customers. Longer operational hours will support recovery for retailers as well as help adhering to social distancing norms."

Arvind Mediratta, MD and CEO, METRO Cash & Carry India said that these lockdowns will create severe inconvenience for all citizens as they also bar operations of food and grocery retail and wholesale stores.

Such hastily-implemented decisions by states undermine investor confidence and would come in the way of making the country "aatmanirbhar" or self-reliant, he said.

Voicing the concerns of retailers, the RAI has submitted representations to various state and local authorities that puts forth recommendations to get businesses and life of consumers on the track to recovery.

It has said that authorities should mandatorily allow essential shops including kiranas, general trade shops, supermarkets, hypermarkets and wholesalers to operate every day of the week until 9 p.m. to cater to the daily needs of the customers.

It has also sought ensuring uniform and regular opening of all categories of retail for full working hours while following stringent hygiene practices and adhering to social distancing norms. This will help avoid overcrowding outside stores as demand will get distributed over all days of the week, it said.

The industry body has also asked the local authorities to open malls in all states. Malls can ensure a safe shopping experience wherein safety measures are taken by both, the mall authorities and the retailers, it said.

Kumar Rajagopalan, CEO, RAI, said: "The need of the hour is concerted efforts by all stakeholders. While retailers are doing their bit by following stringent hygiene practices, the policymakers too need to support to ensure economic revival across the country. Consumption is important for the country and supports the business environment."

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