The chief ministers’ committee on digital payment submits its report

Date: January 27, 2017

digital payments money transfer India

The chief ministers’ committee on digital payment on Tuesday submitted its interim report to Prime Minister Narendra Modi, recommending an array of tax incentives and subsidies. The committee, headed by Andhra Pradesh Chief Minister Chandrababu Naidu, has suggested that there should be a limit on cash in case of big transactions. It also asked the government to levy a cash transaction tax on withdrawals of Rs 50,000 and above.

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Highlights of the recommendations:
1. Capping on maximum allowable cash limit in all types of large transactions is another key recommendation of the committee.
2. It suggested measures to enable all sections of the population to migrate to the digital payments.
3. The panel has suggested to bring all government insurance, educational institutes, fertilisers, PDS and petroleum sectors within the ambit of digital payments.
4. Briefing media after submitting the report, Naidu said the committee wants Aadhaar-enabled micro ATM infrastructure in all the 1.54 lakh post offices.
5. He said the non-income tax payees and small merchants should be given a subsidy of Rs 1,000 for purchasing smart phones.
6. He also said there should be no retrospective taxation to merchants doing digital transactions.
7. Naidu said digital transactions are cost-effective compared to physical currency.
8. The biggest constraint in the exercise is attitudinal changes in the people.
9. The committee was constituted on November 30, 2016 to prepare a road-map for transition into digital economy post- demonetisation.
10. Earlier in the day, Andhra Pradesh CM also held a meeting with committee members.