Finance Minister announces incentives/subsidies announced on digital payments

Thursday, December 8, 2016
New Delhi

The Central Government has announced some incentives/subsidies over the use of digital payments to encourage cashless transactions.

Union Finance Minister Arun Jaitely on Thursday announced the subsidies/incentives. He said that at present 70% of the transactions are below Rs.2,000 and those who transact the tractions through debit/credit cards, the service tax has been lifted.

  • 0.75% on purchase of petrol/diesel
  • 0.5% on monthly, seasonal, sub-urban railway tickets purchased from January 1, 2017 and it will benefit to over 80 lakh commuters.
  • Rs.10 lakh free insurance if tickets are purchased through online . He said that 14 lakh people are travelling on trains and 58 per cent out of it are purchasing tickets through online.
  • 5% subsidy on retiring rooms and catering services
  • 10% subsidy on RFID, Highway toll Fast tags
  • Service tax up to Rs.2,000 on the use of debit/credit cards
  • 10% subsidy on general and life insurance new policy
  • 8% subsidy on payment of premium
  • The rural banks, cooperative banks in the rural areas will be Rupay cards to 4.32 crore people who use Kisan cards.
  • The traders who are using banks PoS machines, Micro ATMs, mobile PoS have to pay Rs.100 per month to the banks. With this, 6.5 lakh machines that are being used by the traders will be benefitted and will encourage cashless transactions

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