The aim of discourage cash transactions the union cabinet on February 24, 2016 approved withdrawal of surcharge sevice charge and convenience fee on card and digital payments.
The prime minister narendra modi also approved mandating payments beyond a prescribed threshold only through a card or digital payment
The proposals for promotion of payments through cards and digital means include steps for withdrawal of surcharge, service charge and convenience fee on card and digital payments currently
The payments through cards and digital means will be instrumental in reducing tax avoidance migration of government payments and collections to cash less mode
The discourages transactions in cash by providing access to financial payment services to citizens to pay through cards and digital means and shifting payment ecosystem from cash dominated to non cash or less cash payments the statement said
The other measures aimed at reducing cash transaction include rationalization of merchant discount rate (MDR) on card transactions and a differentiated MDR framework for some key segments
Other features include introduction of certain card products rationalization of mobile banking
The proposals for promotion of ditital payment For quick resolution of fraudulent transactions and reviewing the payment ecosystem in the county have also been approved