Context
The Finance Ministry’s stand on the suggestions made by a panel of Chief Ministers on encouraging digital payments
Finance ministry’s stand
The Finance Ministry is yet to take a final view on the suggestions made by a panel of Chief Ministers on encouraging digital payments
Panel’s recommendations
In its interim report submitted to Prime Minister on January 24, the panel has recommended
- Levying a handling charge: Levying of a handling charge for cash payments above Rs. 50,000, while pitching for tax breaks to consumers and merchants using digital modes of payments
- Abolition of MDR:It also suggested the abolition of merchant discount rate to make digital payments cheaper than cash
- Banking Cash Transaction Tax: Levy of Banking Cash Transaction Tax on transactions of Rs. 50,000 and above has also been recommended by the panel
- Subsidy for buying smartphones:A Rs 1,000 subsidy for purchase of smartphones by non-tax assesses and small merchants
- Making Aadhaar primary ID: Panel has recommended making Aadhaar primary ID for KYC.
