New Delhi: A number of recommendations have been made by the Cashless Committee headed by Andhra CM Chandrababu Naidu including subsidy to buy smartphones. The committee has also suggested to apply tax on a Rs 50,000 cash transaction to encourage cashless and digital transactions.
The 13-member panel on ‘Digital Payment- Less Cash Economy’ submitted their interim report to Prime Minister Narendra Modi on Tuesday. They have recommended Merchant Discount Rate charges or MDR to be scrapped while implementing a banking cash transaction tax (BCTT) for cash transactions of over Rs 50,000.
The panel recommended cap on maximum permitted limit of cash for large transactions, subsidy of up to Rs 1,000 for smartphones for small merchants, insurance for all mobile-based transaction, interoperable bank and banking correspondent payments through Aadhaar enabled payment system (AEPS), create infrastructure for over 1.5 lakh post offices through interoperable Aadhaar-enabled-micro-ATMs, promote contactless payments for buses and suburban trains in metro cities and onbaord rural and urban cooperative banks on digital transaction platform immediately.