The works relating to promotion of digital transactions will be looked after by Ministry of Electronics and Information Technology (Meity), according to the new rules.
President Pranab Mukherjee has given nod to change government of India, Allocation of Business Rules, 1961, to delegate work of "Promotion of Digital Transactions including Digital Payments" to the Meity, an order issued by Cabinet Secretariat said.
The Ministry is tasked with promotion of e-governance for empowering citizens, promoting inclusive and sustainable growth of the electronics, information technology and information technology-enabled services industries, enhancing efficiency through digital services and ensuring a secure cyber space.
The central government is emphasising upon digital payment, especially after demonetisation of old Rs 500 and Rs 1,000 notes and taking many steps in this regard.
The Union Cabinet chaired by Prime Minister Narendra Modi had in February last year given its approval for introduction of steps for promotion of payments through cards and digital means. The move aims at reducing cash transactions.
"Promotion of payments through cards and digital means will be instrumental in reducing tax avoidance, migration of government payments and collections to cashless mode, discourage transactions in cash by providing access to financial payment services to the citizens to conduct transactions through card or digital means and shifting payment ecosystem from cash dominated to non-cash/less cash payments," according to an official press release issued then.
The Centre had in December 2016 decided on a package of incentives and measures for promotion of digital and cashless economy in the country.