Budget 2017: Finance Ministers' push towards digital transaction
February 1, 2017
To promote digital payments the government will authorize support for digital payment methods, including the BHIM app in petrol pumps, fertiliser depots, municipalities, block offices, road transport offices, hospitals, universities, colleges and other institutions. The launch of the BHIM app has already created opportunities for the digital financial service to be available to all.
The finance minister revealed that till now 1.25 crore people have already adopted the BHIM App.
"It is a digital economy budget. Government has pushed the digital theme in every area of the budget. Every person from small shops to consumers are pushed towards the digital economy. Overall, it is a great budget that will encourage people to move to the formal economy and derive benefits, " said Vijay Shekhar Sharma, Founder & CEO - Paytm.
"The budget will help transforming India into a less cash economy to tackle the issue of corruption and clean up the system is one of the integral strategies of the government" said, Rahul Gochhwal, co-founder, Trupay.
To promote digital transactions following announcements were made in the budget:
- The government is launching referral bonus schemes for customers and cash back schemes for merchants on the BHIM app.
- Service charge on railway e tickets will be withdrawn.
- Launch of Aadhar enabled payment system.
- No transaction above Rs 3 lakh to be permitted in cash; he also added to cut the presumptive tax limit for companies with a turnover up to Rs 2 crore to 6 per cent from 8 per cent.
- To set up payment regulatory board post budget, replacing the existing board.
- "Appreciate the Computer Emergency Response Team to be setup post the budget announcement and dedicatedly monitor cyber hacks, ensuring the security and integrity of online data. The synergy created by these announcements, along with the efforts of cyber security solutions is going to further inspire new users to come online, aiding India's transition to a digital economy'' says Amit Nath, Head of Asia Pacific -F-Secure.
- The government has removed countervailing duty (CVD) and special additional duty (SAD) on components and devices for point of sales (POS) machines, biometric readers and iris scanners. "The acceleration of PoS infrastructure with 10 Lakh PoS machines by March 2017 and another 20 Lakh Aadhaar based PoS by September 2017 is a reflection of pushing digital payments at last mile by 300 per cent from the current base of 15 Lakh PoS achieved so far in last 20 years. The decision to exempt duty on various POS machines will help in reducing cost of digital infrastructure implementation and benefit companies like Oxigen," says Pramod Saxena, Chairman and MD, Oxigen Wallet.