Even within the committee, there were backers of the incentive driven model as opposed to disincentives but most members backed a carrot and stick policy as the government may not find adequate resources to fund the sops.The UPA government had imposed a bank cash transaction tax on cash withdrawals, but had to do away with it in 2009 after criticism. UPA’s move was meant to be a revenue-generating exercise and not to boost digital payments, sources said.
There is renewed focus on the need to root out black money and it has intensified after the note ban. The committee of CMs was set up post-demonetisation to suggest ways to boost the use of non-cash channels.
The committee said there was a need to strengthen security , expand infrastructure and increase awareness for greater adoption of digital payments.
