 "Does Budget 2017 have what it takes to make India a less-cash economy?")
Among the many firsts in Union Budget 2017, policy and Budget measures to construct a digital economy stood out as original and groundbreaking measures.
Referral bonus scheme for individuals and cashback scheme for merchants via the BHIM app
To promote the activation and the use of BHIM or Bharat Interface for Money (riding on NPCI’s UPI infrastructure for peer-to-peer payments), the cashback and referral bonus schemes should be backed by a user experience comparable with popular wallets in the market.
Aadhaar Pay and nationwide roll-out of Aadhaar-based point of sale terminals
An alternative payment system that enables sending and receiving of payments upon user’s successful biometric authentication can help fulfil the government’s financial inclusion objectives. Measures are being taken to improve biometric authentication responses and cheap handsets are touted for market entry soon.
Roll-out of 1 million new POS terminals by March 2017
The government had set a target for acquirers in the country to bolster the card acceptance infrastructure with an additional 1 million units by March 2017. To this measure, the excise and custom duties on import and manufacturing of these machines were lowered significantly.
Encouragement to SIDBI to provide assistance based on loan history
The increase in adoption of digital payments by merchants will result in a larger footprint digitally for these entities, resulting in higher eligibility for credit. With these merchants being largely underserved by traditional credit rating agencies, smaller merchants are deprived of capital to build their businesses. With improved digital transactions histories, business’ credibility will drive opportunities for them to grow in their industries.
Promoting digital
Walking the talk and putting money where their mouth is best describes this affirmative action. This is an excerpt from an article published on TechInAsia. You can read the full story here
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