The CMs Committee on Digital Payments led by the convener and Andhra Pradesh Chief Minister, Shri Chandra Babu Naidu submitted the interi...
The CMs Committee on Digital Payments led by the convener and Andhra Pradesh Chief Minister, Shri Chandra Babu Naidu submitted the interim report on Digital Payments to the Prime Minister, Shri Narendra Modi today. Chief Ministers of Madhya Pradesh, Maharashtra, Sikkim along with the Vice-Chairman of NITI Aayog Shri Arvind Panagariya and CEO NITI Aayog Shri Amitabh Kant were present on the occasion. Later addressing a Press Conference at NITI Aayog, the convener of the CMs Committee on Digital Payments Andhra Pradesh Chief Minister, Shri Chandra Babu Naidu shared the highlights of the recommendations in the interim report.
Following is the link to Highlights of the recommendations made in interim report by the CMs Committee on Digital Payments:
- Tax incentives to be extended to Micro ATMs, Biometric Sensors etc. Domestic production to be encouraged
- Tax refund for consumers using digital payment upto a certain proportion of annual income.
- For Aadhaar Pay, Biometric (FP & Iris) sensors to be provided at 50% subsidy to all merchant points
- AEPS to be promoted by incentivising & not charging MDR
- Provide infrastructure for 1,54,000 post offices by way of interoperable Aadhaar enabled Micro-ATMs.
- Create fund from savings generated through cash-less transactions for incentivising acquiring bank acceptance infrastructure creation in semi-urban and rural areas
- Contactless payments to be promoted for travelling in buses & suburban trains in metro cities
- UPI App should contain a common interoperable UPI QR Code. Banks to encourage the common QR Code at merchant location
- Rural and Urban Cooperative Banks should be onboarded to Digital Transactions mode immediately
- To curb use of cash for large transactions consider levy of banking cash transaction Tax (BCTT) on transactions of Rs. 50,000 & above
- Consider cap on maximum allowable limit of cash in all types of large ticket size transactions
- All government sections like insurance, educational institutes, fertilisers, PDS, Petroleum etc to switch to digital payments
- Lower / Zero MDR for all digital payments to Government entities.
Govt has also Released clarification on the subject
The media has reported various aspects of the recommendations made by the Committee, including the recommendation relating to levy of Banking Cash Transaction Tax on transactions of Rs. 50,000/- and above. It is informed that the Government has not yet taken any final view on the recommendations of the Committee. The recommendations will be carefully examined and appropriate decisions will be taken in due course.