TIA NEWS / NEW DELHI
Union Finance Minister Arun Jaitley has said that the digital transactions are a parallel mechanism and not a substitute for the cash transactions. He said, cashless economy is actually a less cash economy because no economy can be fully cashless.
Addressing the consultative committee meeting of his ministry in New Delhi today, Mr. Jaitley said, the government was trying to encourage digitization as much as possible because an excessive cash economy has its own social and economic costs.
The Minister said, the less cash can be gradually substituted to the possible extent through digital payments and transactions. On members’ suggestions regarding cyber security, the Finance Minister assured them that the government is conscious of challenges and need to secure digital payments. He said, the government is trying its best to minimize inconvenience of people.
Listing the steps taken by the government and the RBI to decrease the cost of digital transactions, he mentioned about the reduction in MDR charges on online transactions and incentives on purchase of petrol and diesel through digital payment.
On the availability of PoS machines, Mr Jaitley said, the machines are manufactured by companies in China and the government has waved off duties on them so that they could become cheaper and become available to the shopkeepers easily.