Make Aadhaar primary ID for KYC, says panel

New Delhi: A Rs 1,000 subsidy for purchase of smartphones by non-tax assesses and small merchants and a cash transaction tax on withdrawals of Rs 50,000 and above in banks have been recommended by a Chief Ministers’ panel to promote e-payments.

Mr Naidu, while interacting with the media on Tuesday after submitting the interim report to Prime Minister Narendra Modi, said that the key factor for making digital payment system a success in the country is  to bring down the cost of digital transactions.

It has recommended a tax refund for consumers using digital payment upto a certain proportion of income. Aadhaar, it has said, should be made primary ID for KYC. Section 57 of  Aadhaar Act can be applied.

For Aadhaar-linked payments, biometric sensors should be provided at 50 per cent subsidy to all merchant points, the panel has recommended. It has also called for providing infr-astructure for 1.54 lakh post offices by way of interoperable Aadhaar enabled micro-ATMs. Contactless payments should also be promoted for travelling in buses and suburban trains in metro cities.