Digital payment the future of financial transactions: Arun Jaitley

Asserting that hard cash in India would become obsolete in the near future, Union Finance Minister Arun Jaitley on Monday said that digital payments like e-wallet system and mobile banking would rule the roost which would immensely benefit the people.

"In future, the proportion of hard currencies in India is set to become less just like the other developed nations. Digital payments are the future of financial transactions," Jaitley said at the Punjab National Bank app launching ceremony held here.

He also said that there is a room for cutting the service charge on the use of debit and credit cards once it's volume of usage increases.

"The payments made by cards where service charge is currently high, which has been waived off till 31st December, would consequently become low once the volume of debit cards usage increases," Jaitley said.

The renewed push for digital payments from the government came after Prime Minister Narendra Modi directed his senior ministers to enlighten the people about merits of using e-wallets and other digital payment methods.

According to government sources, the Prime Minister asked his ministers to start the promotion of cashless economy with their own staffs followed by their ministry and then constituency to appeal to larger masses.

Finance Minister Arun Jaitley also spoke to Bihar Chief Minister Nitish Kumar amongst the others to form a sub-committee to give impetus to a cashless economy.

In the 26th edition of Mann Ki Baat programme, Prime Minister Modi said, "I know cashless economy is different. Why not move towards a cashless society? Need your physical support in this. I took this decision for the country's poor, farmer, labour, deprived and for those who are suffering. I reiterate that I need your support; I am positive that you will help me in this; take a pledge that you will be a part of this cashless economy.