Top Story

e4m_logo.png

Home >> Digital >> Article

Government announces major reforms to promote less cash economy

10-March-2016
Font Size   16
Share
Government announces major reforms to promote less cash economy

In a major development, the government has notified that for government services, there will be no surcharge for card and online payments. This follows a recent cabinet note in which the government has suggested to remove surcharge, formulating a differentiated MDR framework, introduction of a formulae linked acceptance infrastructure for different stakeholders and incentivising digital transactions to promote less cash economy.

Besides, the government has also suggested mandating payments beyond a prescribed threshold only in card/ digital mode; rationalisation of telecom service charges for digital financial transactions; promotion of mobile banking; and creation of necessary assurance mechanisms for quick resolution of fraudulent transactions and review the payments ecosystem in the country.

The majority of the above recommendations were from Internet and Mobile Association of India (IAMAI) and Payments Council of India (PCI), and the association is delighted to welcome the positive and comprehensive steps taken by the government. The association hopes that a speedy implementation of all these recommendations will usher in more accountability, transparency and efficiency in the economy. 

The industry body, in its recommendations to the Ministry of Finance in the ‘Draft Proposal for Facilitating Electronic Transactions’, had focused on government departments bearing MDR cost like other merchants, differentiated MDR framework for certain cash dominated sectors, having significant ticket sizes and generating considerable volumes of transactions, installing POS devices in proportion to cards issued and incentivizing the customers and merchants for adoption electronic payments among other things.

There is an optimistic and positive sentiment within the payment ecosystem and PCI hopes all these implementations collectively will boost transactional efficiency, reduce cost, improve transparency and accountability and drive financial inclusion.

Rajat Sharma who was recently elected as President of the NBA talks about his plans for the industry body

The Country Sales Manager Media at Akamai says that technology seems to be taking over all possible spaces and people considering it in both positive and negative ways

The India Marketing Lead of Skyscanner believes that with the acquisition by Ctrip they have reached the market leader status

Our typical marketing budget is usually 10 per cent of the topline spend

The BBC carried out a survey along with Globescan to see how the world looks at the issue of ‘fake news’

The objective of content marketing is not just to encourage product purchase or generate ROI. The key to its success lies in building relationships based on trust, opines Dasgupta

The interesting animated rap music video encapsulates Droom’s ecosystem tools and their role in facilitating second-hand automobile transactions