More incentives, subsidy likely for digital payments

Smartphones may receive subsidy

More incentives,  subsidy likely for digital payments

The government is contemplating giving more incentives including a subsidy on smartphones to promote digital payments.

The Committee of Chief Ministers to push digital payments is also working with Niti  Aayog to address existing constraints in connectivity, hardware and technical infrastructure to promote cashless transactions.

“Incentives to users and subsidy for smartphones are being contemplated to push digital payments across India,” Andhra Pradesh Chief Minister Chandrababu Naidu, who heads the committee said.

Naidu was speaking after the committee held its fourth meeting in New Delhi on Wednesday.

He said Nasscom and telecom operators, along with Niti Aayog, are in the process of creating a helpline — 14444 — for addressing all queries on digital payment.

Naidu said a plan is afoot to import 10 lakh POS machines to enable digital payments across India.

He said the committee of chief ministers has favoured continuance of service tax exemptions on digital payments beyond December 31.

 “We want to recommend this (service tax exemptions) to the government to continue not only beyond December 31, but also beyond March 31, and for the future also. If digital currency will be costlier than physical currency, then people will go to physical currency,” Naidu said.

He said the committee headed by him will present its interim report on digital payments movement to Prime Minister Narendra Modi within a week.

“We are planning a sustainable, long-term policy to attract a majority in India to move to digital payments through providing incentives,” Naidu said.

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