Petrol, Train Tickets To Cost Less If Purchased Via Digital Mode

To accelerate cashless transactions through credit/debit cards and mobile phone applications/e-wallets etc, the Union Government has announced a package of incentives and put in place new measures to promote digital and cashless economy in the country.

The following are the incentives announced by Union Finance Minister Arun Jaitley.

• The Central Government Petroleum PSUs will offer a discount of 0.75% of the sale price to consumers if the purchase of petrol/diesel is made through digital means. This will benefit 4.5 crore customers who buy fuel worth Rs 1800 crore every day.
• The Government through NABARD will extend financial support to eligible banks for deployment of 2 POS devices each in 1 Lakh villages with population of less than 10,000. These will be set up at primary cooperative societies/milk societies/agricultural input dealers. This will benefit 75 crore rural populations in one lakh villages.
• The Government will support Rural Regional Banks and Cooperative Banks to issue “Rupay Kisan Cards” to 4.32 crore Kisan Credit Card holders.
• Railway through its sub urban railway network shall provide 0.5% discount to customers for monthly or seasonal tickets from January 1, 2017, if payment is made through digital means. This will benefit 80 lakh passengers who spend nearly Rs 2000 crore per annum.
• All railway passengers buying online ticket will get free accidental insurance cover of up to Rs. 10 lakh. This will benefit 14 lakh railway passengers who buy tickets online.
• For paid services e.g. catering, accommodation, retiring rooms etc.in railways, a discount of 5% would be given on payments through digital means.
• Public sector insurance companies will give credit to a tune of 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.
• Central Government departments and Central PSUs will ensure that transactions fee/MDR charges associated with payment through digital means shall not be passed on to the consumers and all such expenses shall be borne by them. * Public sector banks are advised that merchant should not be required to pay more than Rs 100 per month as monthly rental for PoS terminals/Micro ATMs/mobile POS .
• No service tax will be charged on digital transaction charges/MDR for transactions upto Rs.2000 per transaction.
• For the payment of toll at Toll Plazas on National Highways using RFID card/Fast Tags, a discount of 10% will be available to users this fiscal.