The Indian government on Thursday announced a slew of measures in an apparent move to encourage people to adopt the cashless economy.
The move which came after a month since the government announced the scrapping of old notes, offers incentives for using digital payments for the payments made to central government departments and public sector firms, purchase of fuels at state-owned petrol stations, insurance policies, rail tickets for inter-state trains, and monthly passes in sub-urban rail networks.
The government also declared its steps to address the infrastructural challenges the rural villages face to adopt cashless transactions.
While no end date of these incentives has been announced, the government has made it clear that the respective governments will bear the cost of these incentives.
Finance Minster, Arun Jaitly, stated that there was a cost of transaction in cash which was being borne by the economy and the political system, adding that the digital payments will usher in transparency in political funding.
To push its drive for and create a blueprint for smooth transition to cashless economy, the government had formed a panel of Chief Ministers from different political parties, and roped in expert Nandan Nilekani, former chairman of the Unique Identification Authority of India earlier this month.
The panel has suggest use of smartphones that can perform biometric authentication as mini-ATMs.