Get incentives from govt for going cashless soon; Budget 2017 may announce fund to incentivise digital payments

In order to boost digital payments in the country, the government is mulling to set up a digital payments incentive fund which will fund measures to widen infrastructure to support digital payments.

New Delhi: In order to boost digital payments in the country, the government is mulling to set up a digital payments incentive fund which will fund measures to widen infrastructure that supports digital payments.

BTVi quoting Finance Ministry tweeted on Friday that government is likely to make the announcement in the Budget on February 1.

The Committee on Digital Payments constituted by the Ministry of Finance, Department of Economic Affairs under the Chairmanship of Ratan P. Watal, Principal Advisor, NITI Aayog and former Finance Secretary to the Government had recommended a medium term strategy for accelerating growth of Digital Payments in India.

The fund will be aid in creating PoS-based infrastructure, and finance solutions for adopting digital payments, in education common public. The fund may even be used in cash back schemes, similar to those used by mobile wallets, and incentivise digital payments made for government services and public utilities.

Budget 2017-18 will offer a focused opportunity to the government to boost digital payments infrastructure in the country. Post demonetisation of Rs 500 and Rs 1,000 notes in November, government has been emphasizing on usage of cashless payments which will result in making every penny accountable. As digital payments become popular in the country, government expects to get a boost to revenue collection and curb in black money economy.