All the government petrol pumps will provide incentive by offering a discount at the rate of 0.75% of the sale price on purchase of petrol/diesel if payment is made through digital means. Finance Ministry is hopeful this would shift at least 30% more customer to digital means, which reduces the cash requirement of nearly Rs. 2 lakh crore per year.
This is part of several incentives announced by the government today to encourage digital transactions in the aftermath of demonetizatin.
Railways through its sub urban railway network provides incentive by way of discount upto 0.5% to customers for monthly or seasonal tickets from January 1, 2017, if payment is made through digital means. Nearly 80 lakh passengers use seasonal or monthly ticket on suburban railways, largely in cash, spending worth nearly Rs.2,000 crore per year. This would reduce the cash requirement of Rs.1,000 crore per year
All railway passengers buying online ticket will be given free accidental insurance cover of upto Rs. 10 lakh. Nearly 14 lakh railway passengers are buying tickets everyday out of which 58% tickets, over 11 lakh passengers, are bought online through digital means. It is expected that another 20% passengers may shift to digital payment methods of buying railway tickets.
For paid services e.g. catering, accommodation, retiring rooms etc. being offered by railways through its affiliated entities/corporations to the passengers, it will provide a discount of 5% for payment of digital means.
Public sector insurance companies will provide incentive, by way of discount or credit, upto 10% of the premium in general insurance policies and 8% in new life policies of Life Insurance Corporation sold through the customer portals, in case payment is made through digital means.
No service tax will be charged on digital transaction charges/MDR for transactions upto Rs.2000 per transaction. For the payment of toll at Toll Plazas on National Highways using RFID card/Fast Tags, a discount of 10% will be available to users in the year 2016-17.
