11 reasons why you should go cashless now, Digital payment benefits

Government has announcement some special incentives to encourage Digital Payment. The purpose of this initiative is to educate the people regarding digital payment benefits.  Here are some benefits which will lure you to opt out for cashless transactions.

digital payment benefits

  1. Discount of 0.75% on digital payments of Central Government Petroleum PSUs. This will benefit nearly 4.5 crore customers at petrol pumps per day. This incentive has the potential of shifting at least 30% customers to digital payments. This will also reduce the cash requirements of nearly Rs. 2 lakh crore per year at petrol pumps.
  2. 2 POS device will be deployed in each of 1 Lakh villages with population of less than 10,000. Government through NABARD will extend financial support.
  3. Rural Regional Banks and Cooperative Banks to issue “Rupay Kisan Cards” to 4.32 crore Kisan Credit Card holders. Government will support this through NABARD. This will benefit farmers of one lakh village covering a total population of nearly 75 crore who will have facility to transact cashlessely in their villages for their agri needs.
  4. Discount of 0.5% for monthly or seasonal tickets on digital payments from 1st Jan 2017 on suburban railway network. It will benefit nearly 80 lakh passengers using seasonal ot monthly ticket on suburban railways. As passenger will shift to digital means the cash requirement may get reduced by Rs 1,000 crore per year in near future.
  5. Free accidental insurance upto Rs 10 lakh on buying online ticket in Railways. This wil benefit nearly 14 lakh railway passengers everyday. It is expected that another 20% passengers may shift to digital payments. Nearly 11 lakh passengers per day expected to be covered under the accidental insurance scheme.
  6. No service tax on digital transaction charges/MDR upto Rs 2000 per transaction.
  7. Discount or credit of upto 10% on the insurance premium sold through the customer portals of public sector insurance companies on digital payment.
  8. Central Government Departments & PSUs to bear transactions fee/MDR charges on digital payments. State Governments being advised to do the same.
  9. 10% discount for toll payment on National Highways using RFID card/Fast Tags in 2016-17.
  10. Public sector banks advised to not charge more than Rs 100 per month as rental for PoS terminals/Micro ATMs/mobile POS from merchants.
  11. Nearly 6.5 lakh machines by Public Sector Banks have been issued to merchants. Merchants will be benefitted by lower rentals and promote digital transactions. With lower rentals, more merchants will install such machines and promote digital transactions.

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