Top 10 Benefits of Cashless Payment in India

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Exactly after 1 month of Demonetization, on 8th Dec 2016, Government announced incentives for digital payments providing a push for a cashless economy.

Moving towards a Cashless Economy: Here are the advantages

• Cost of handling cash reduces

• Brings transparency

• Help curb the creation of black money

• Will increase the tax base and add to tax revenues.

Hightlights of the incentives announced –

1) Discount on fuel Purchase

0.75% discount on buying petrol and diesel through debit cards, credit cards and e-wallets.

2) PoS Machines in Village:

Currently, there are 6.5 lakh Point of Sale (PoS) machines across the country. Villages with a population of up to 10,000 will get 2 Point of Sale machines free of cost and that one lakh villages will be selected for this scheme of availing free Point of Sales machine.

3) Ceiling on Monthly Charge on PoS Machines

Monthly rental for PoS terminals/Micro ATMs/mobile POS given by banks will be capped at Rs 100. This is aimed at bringing small merchants on board the digital payment eco-system.

4) Discount on Suburban Railway tickets:

Discount of 0.50% for purchase of Sub-urban railway monthly and seasonal tickets from 1 January 2017

5) Insurance Cover for Rail Travellers:

Railways will provide free accident insurance coverage of Rs. 10 Lakhs for passengers who are booking the tickets online. Currently, 58 percent passengers buy tickets online

6) Discount on Rail Utilities:

Railways will also offer 5 per cent discount on digital payments for accommodation, catering and retiring room bookings at railway stations

7) Service Tax Exemption:

No service tax will be charged on credit and debit card payments on transactions of up to Rs. 2,000 in a single transaction.

8) Discount on Highway Toll:

For online payment of toll on national highways using RFID card/fast tags a discount of 10 per cent will be offered. 

9) Discount on Insurance Premiums:

Customers paying payments through online gateways of public sector general insurance companies will be given a 10 percent discount.

The discount will be 8 percent for premium of new life policies made through the portal of Life Insurance Corporation (LIC)

10) Rupay Cards to Farmers:

Rural Regional Banks and Co-operative Banks to issue ‘Rupay Kisan Cards’ to 4.32 Crore Kisan Credit Card Holders. This will benefit farmers of 1 Lakh village covering a total population of nearly 75 Crore who will have facility to transact cashlessly in their villages for their agri needs.

And lastly,
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