Disincentives for usage of cash – Committee on Digital Payment Recommendation

By | December 28, 2016
(Last Updated On: December 28, 2016)

Disincentives for usage of cash – Committee on Digital Payment Recommendation

Implement disincentives for usage of cash

a) Permit merchants including government agencies to levy a cash handling charge for payments in cash above a certain threshold. The cash handling charge so collected should be exclusively used fund new infrastructure for acceptance of digital payments (like POS devices).

b) Gradually reduce threshold for quoting of PAN for cash transaction in banking from Rs 50,000 and for similarly for merchant/other transactions where the current threshold is Rs 200,000. Include quoting of Aadhaar as an alternate (over other KYC) for natural persons not having PAN or who are not required to obtain PAN as per provisions of section 139A of the Income Tax Act, 1961.

Read Complete Report Report of Committee on Digital Payments (Constituted by Govt of India )

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