NT NETWORK
PANAJI
Stating that the central government was considering various options for reducing transaction fees on cashless modes of payment, Defence Minister Manohar Parrikar on Wednesday said that cashless transactions in the state have increased fivefold since the demonetisation move was adopted.
He was speaking at the function of ‘digi dhan fair’ held in the city for launching the Lucky Grahak Yojana to encourage consumers and the Digi Dhan Vyapar Yojana to push merchants for switching over to digital payments.
“It is very surprising to know that banks charge customer transaction fees for payments made through point-of-sale or card swipe machines but do not charge for withdrawing cash from ATMs. It is a strange position,” he said, observing that the government was now mulling bringing about measures for promotion of payments through cards and digital means.
The two schemes, which have been launched by the National Institution for Transforming India Aayog, aim to give cash awards to consumers and merchants who utilise digital payment instruments for expenditure and payments.
Touching upon the scene of cashless transactions in the state, Parrikar claimed that post-demonetisation there has been fivefold increase in cashless transactions.
“Given the existing banking infrastructure it is not very difficult for the state to achieve 50 per cent of cashless transactions. But it has been estimated that at present around 20 per cent of transactions are being done using cashless options,” he said.
Parrikar said that all government payments have become 100 per cent cashless and efforts are on to put a system in place for making online receipts.
Underlining the need for cashless economy for a healthy growth rate, the Defence Minister said, “Excessive cash supply actually enhances the level of tax evasion, crime and other irregularities… and it is always in the interest of the society to reduce the quantum of currency notes…”
He pointed out that Sweden has been pushing its citizens towards a cashless society. The quantum of cash there has come down to 1-3 per cent, and that the country has been shaping up as the foremost country in the world vis-à-vis cashless economy.
“This is just a beginning to make India a cashless economy. Cashless doesn’t mean there is no cash. The basic aim of this move, he said, is to reduce the use of cash and make sure everyone in the country pays tax to the government,” Parrikar said.
