Jaitley pushes for cashless economy, unveils discounts for digital payments

New Delhi: Pushing forwards the government's dream to achieve a cashless society in the country, Finance Minister Arun Jaitley on Thursday said that petrol and diesel would be cheaper for those who pay be cards.

"Petrol and diesel will be cheaper for those who pay by digital mode, they will get 0.75% discount," Jaitley said. He announced several other discounts on digital payments for various other services.

People buying monthly seasonal tickets in suburban railway networks through digital payment mode would get 0.5% discount. Jaitley added that those who make online payment for railway tickets will be given free accident claim insurance worth Rs 10 lakh.

"Dealing in cash has economic costs, so the government is promoting payment by credit, debit cards and e-wallets," Jaitley explained.

Similarly, 10 per cent and 8 per cent discount will be offered in case of general and life insurance for buying new policy or paying premium online via PSUs websites.

Those using digital mode to pay for railway catering, accommodation, retiring room will be entitled to discount of 5 per cent.

Jaitley said that public dealings with government departments and PSUs through digital mode will be free of transaction fee and MDR charges. Also credit/debit card transactions up to Rs 2,000 will be exempt from service tax.

The minister further said 10 per cent discount will be available on use of digital mode for paying for RFID or fast-tags for highway toll.

"We were using excessive amount of cash and very very limited amount of digital transactions till November 8," he said, adding there is cost of transacting in cash which has to be borne by economy.

He also announced that villages with a population of up to 10,000 will get 2 Point of Sale machines free of cost and that one lakh villages will be selected for this scheme of availing free Point of Sales machine.