Go Cashless, Get Discounts On Fuel, Rail Travel And Insurance Payments

Finance Minister Arun Jaitley on Thursday announced a slew of measures facilitating digital transactions, one month after the demonetisation was announced.

The government and banks are trying to promote digital payments and the last one month has seen a sizable switchover from cash to digital, Jaitley told reporters.

Here are the provisions announced by the finance minister:

• Customers who pay for fuel at pumps through digital means will get a 0.75 percent discount.
• Two point of sale machines will be provided to each village with a population of up to 10,000. This will receive support from the financial inclusion fund.
• Rural and cooperative banks will provide Rupay Kisan cards to 4.32 lakh farmers for use at point of sale terminals, ATMs and micro ATMs, supported by NABARD and co-operative banks
• Monthly and seasonal tickets of suburban railway networks will get an up to 0.5 percent discount if paid for digitally. This will be applicable from January 1, 2017 and the discount will start from the Mumbai suburban railways.
• Digitally booked rail tickets will get a Rs 10 lakh accident insurance cover.
• Railways will offer a discount of 5 percent for digital payment of paid services like accommodation and catering, offered through its affiliates like Indian Railway Catering and Tourism Corporation.
• If insurance policies are bought from customer portals of public sector insurers, and premium are paid online, there will be a 10 percent discount on general insurance, 8 percent discount on life insurance premium.
• Public sector banks will ensure that merchants do not have to pay more than Rs 100 per month for PoS terminals, micro ATMs and mobile PoS.
• Transaction fees or MDR will not be applicable for transactions with central government, or companies owned by it
• For payment of toll at toll plazas on national highways using RFID card/Fast Tags, a discount of 10 percent will be available to users

The cost incurred from these incentives will be borne by the respective central government-run bodies. The finance minister has not indicated an end date for these schemes as of now.