The Union Budget, as anticipated, has laid clear emphasis on digitisation and bringing in greater transparency in economic transactions. Several initiatives have already been undertaken by the government in this direction as post-demonetisation move.
Various suggestions have also been shared by the Ratan Watal committee and more recently by the Chief Ministers’ committee to promote digital transactions in the country. Today’s budget has further reiterated the seriousness of the government to convert India into a less cash economy and to remove the existence of black economy from the system.
A number of steps have been announced in the budget which would encourage people to use digital or electronic modes of payment, particularly addressed to those who still do not have payment cards like launch of a merchant version of Aadhar Enabled Payment System which will not require the other payment modes like debit cards, mobile wallets or mobile phones, and launch of two new schemes – Referral Bonus Scheme for individuals and a Cashback Scheme for merchants to promote the use of BHIM. On the supply side, 20 lakh Aadhar based PoS machines will be introduced by banks by September 2017. Announcement of abolition of service tax on railway tickets that are booked online will also increase the popularity of e-tickets further.
