The Government scrapped 500 and 1000 rupee notes from November 8th 2016. Citizens of our country have no choice, but to go cashless. A whole state…Goa is going cashless. Let’s take a look at what the Government is doing, to make sure going cashless is not only easy…it’s also an enjoyable experience. You can save a lot of money, by going cashless.
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Yes…all you need to do is pay for petrol and diesel at state owned outlets, using your debit/credit card and mobile wallet. You get a 0.75% discount on your purchase of petrol and diesel. Why does the Government want you to go cashless for petrol and diesel payment? Simple…it reduces cash requirement at petrol pumps by a whopping INR 2 lakh crores a year. Why is this move good? More than 30% of customers who currently pay by cash…will soon go cashless.
The Government has waived off service tax on transaction charges/merchant discount rate, which stores have to pay, when a customer swipes a debit/credit card to make a payment. This benefit is only for payments up to INR 2,000. Central Government departments and public sector enterprises, will waive off transaction charges/merchant discount rate completely, on digital payments.
How are public sector banks helping you? The public sector banks will not charge merchants more than INR 100 a month, for the rentals of point of sale (POS) terminals. The monthly rentals on more than 6,50,000 POS terminals, which have been provided by state owned banks, will not exceed INR 100. You do not have to bear the burden of transaction charges/merchant discount rates and this can only be good for you.
Rural regional banks and co-operative banks will be helped by NABARD, to issue RuPay Kisan cards, to more than 4.32 crore Kisan credit card holders. Why is this move good? Soon these 4 crore + Kisan credit card holders, can make digital transactions at POS machines and even ATMs/ micro ATMs.
You get to enjoy a 0.5% discount, if you purchase your monthly and seasonal tickets, online for your suburban train travel. You get this benefit from January 1st 2017. What about the paid services offered by railways? The railways offers you a number of paid services….Food, accommodation, retiring rooms and so on. You get a 5% discount if you pay for these services through credit/debit cards and mobile wallets.
There’s more good news….You purchase your railway ticket online? You get free accident insurance cover of INR 10 Lakhs. How does the railways gain by you going cashless? The share of online transactions will go up from 58% to 78%. The cash requirements for the railways will come down from INR 2000 crores to INR 1000 crores.
You pay the toll for travel on National Highways through an electronic tag (RFID an automatic ID system which uses radio waves for identification)….You get a 10% discount on such payments.
A village has a population of over 8000? These villages will get 2 POS machines each, absolutely free of cost. India has 1 lakh such villages. The population in these villages is around 75 crores.
You avail insurance online from the customer portal of public sector companies? You get an 8% discount on life insurance premiums and 10% discounts on general insurance premiums.
The Government is encouraging you to go cashless, with a number of measures. All you need to do is go cashless….Be Wise, Get Rich.
Mr C.S.Sudheer is a management graduate. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.