Press Information Bureau
Government of India
NITI Aayog
10-December-2016 18:18 IST
Incentivizing Digital Payments
Government
of India has initiated numerous steps to combat the scourge of
Corruption and Black Money in the last two and a half years.
Demonetization of 500 and 1000 Rs. notes is an important milestone in
this endeavour. These large denomination currencies have resulted in a
number of ill effects upon the economy. To increase overall transparency
in the economy, it is important that we set into motion long term
schemes to encourage digital payments so that tax evasion can be
minimized.
It is possible to leverage technology to carry out
business transactions digitally through online payments, mobile banking,
e-wallets, debit cards etc. There are a large number of instruments to
move from digital to digi-dhan. In Africa a developing country like
Kenya has made this possible. In a country like India where 65% of the
population is below 35 years of age, whose IT prowess is well recognized
and where even poor and illiterate people exercise their franchise
through EVMs, this transformation toward digital economy is definitely
possible provided the citizens resolve to do so. This would enable the
economy to grow at a faster pace.
In order to realize this vision,
we need to encourage electronic payments and nudge the society to move
from digital to digi-dhan. There has been a remarkable increase in both
volume and amount of digital payment transactions since November 8th.
However, it is necessary to ensure that electronic payments are adopted
by all sections of the society. In view of the above, NITI Aayog has
requested National Payment Corporation of India (NPCI) to conceptualize
and launch a new scheme to incentivize digital payments. It would be
useful to reiterate that NPCI is a not for profit company which is
charged with a responsibility of guiding India towards being a cashless
society.
The highlights of the proposed incentives scheme are as follows:
• All consumers and merchants using digital payments shall be eligible
• There are two levels of incentive amounts available under the scheme:
• Weekly lucky draw of the transaction IDs generated in that week, the contours of which are being finalized.
• Quarterly draw for grand prizes.
• While designing the scheme the focus will be on poor, lower middle class and small businesses.
• All modes of digital payments- viz. USSD, AEPS, UPI and RuPay Cards- will be eligible.
• For merchants, transactions made on the POS machines installed at their locations would be considered.
•
The detailed guideline of the scheme shall be unveiled soon. However,
it would be ensured that all those who have used digital payment systems
after November 8th shall be eligible to participate in the scheme.
•
The scheme would also provide for recognition of State Governments,
their Undertakings, Districts and Urban & Rural Local Bodies who
innovate for promoting electronic payment in their respective
jurisdictions.
