Govt forms panel to suggest ways on promoting card transaction

The government has formed a committee which will come out with structures that can be put in place to encourage use of credit or debit cards, Finance Secretary Rajiv Mehrishi said today.
"We have formed a committee to look at what are the best ways to incentivise use of credit or debit cards ... The committee will look at what structures can be put in place to encourage use of credit or debit cards," Mehrishi told reporters here.
Finance Minister Arun Jaitley in his maiden full-year Budget had said the government will announce incentives to encourage card usage by consumers to curb black money flow into the system.

"One way to curb the flow of black money is to discourage transactions in cash. Now that a majority of Indians has or can have, a RuPay debit card, I, therefore, propose to introduce soon several measures that will incentivise credit or debit card transactions, and disincentivise cash transactions," Jaitley had said .
Elaborating further, the Finance Secretary said, "Several things are in considerations, for example incentivising banks ... You know there are transaction costs which government can perhaps share."
"But there are also otherwise, you know what I would say to disincentivise cash transaction, any expenditure by a person in a five star hotel above Rs 5,000 have to be settled using credit card, there can be also decisions like that."

Till January 31, over 11 crore Rupay cards have been used under Pradhan Mantri Jan Dhan Yojana. This will definitely help banks to encourage customers to go digital with their transactions.