Petrol, Diesel Cheaper If paid by card, Jaitley announces string of incentives to promote cashless transactions

The measures, though with marginal discounts, covered several areas, to further boost the surge in digital transactions following cancellation of the legal tender character of old Rs. 500 and Rs. 1,000 notes.

Announcing the incentives, Jaitely said the  Central Government Petroleum PSUs shall give a discount at the rate of 0.75 per cent of the sale price to consumers on purchase of petrol/diesel if payment is made through digital means.

" Around 4.5 crore consumers purchase fuel every day. For those using cards and e-wallets, petrol and diesel purchases will now attract a 0.75 per cent  discount," he said.

According to a PIB release, it  is estimated that petrol/diesel worth Rs.1800 crore is sold per day to the customers out of which nearly 20 per cent  was being paid through digital means.  In November 2016,  it has increased to 40 per cent  and the cash transaction of Rs.360 crore per day have got shifted to cashless transaction methods.

The incentive scheme has the potential of shifting at least 30 per cent more customer to digital means which will further reduce the cash requirement of nearly Rs. 2 lakh crore per year at the petrol pumps.

Jaitley also said that the  Central Government,  through NABARD will extend financial support to eligible banks for deployment of 2 POS devices each in 1 Lakh villages with population of less than 10,000.

These POS machines are intended to be deployed at primary cooperative societies/milk societies/agricultural input dealers to facilitate agri-related transactions through digital means.

According to the Government, this will benefit farmers of one lakh village covering a total population of nearly 75 crore who will have facility to transact cashlessly in their villages for their agri needs.

   The Central Government, through NABARD, will also support Rural Regional Banks and Cooperative Banks to issue “Rupay Kisan Cards” to 4.32 crore Kisan Credit Card holders to enable them to make digital transactions at POS machines/Micro ATMs/ATMs.

Railway through its sub urban railway network shall provide incentive by way of discount upto 0.5 per cent to customers for monthly or seasonal tickets from January 1, 2017, if payment is made through digital means.

"This discount will be applicable from January 1, 2017," Jaitley said.
He said railways  passengers who purchase tickets online will be entitled to an insurance coverage of Rs. 10 lakh.
Nearly 80 lakh passengers use seasonal or monthly ticket on suburban railways, largely in cash, spending worth nearly Rs.2,000 crore per year.

The Finance Minister further announced that Government bodies will not charge a transaction fee for digital payments.

"People who pay digitally, and use Smart TAGs and RFID facilities at toll plazas on national highways will get a 10 per cent discount," he said.

Asserting that the shift to a 'less-cash' economy has to be achieved," Jaitley said merely depositing money into bank accounts won't change black to white.
" All these transactions will be closely scrutinised and a tax will be imposed on it" and "any  misconduct will be dealt with seriously."