Committee on Digital Payments: A committee on the digital payments has come up with a solution for the transactions in cash. It said that higher cash transactions should be taxed. It also said that the charges imposed on the debit and credit card transactions should be completely abolished and a threshold limit should be set for a number of cash transactions.
The committee on digital payments is headed by Andhra Pradesh CM Chandrababu Naidu who has opined that if digital payments are to be promoted, the transacting process should be made cost effective. As per the committee, cash transactions above Rs 50000 should be taxed.
Committee on Digital Payments suggestions
Yet another suggestion made by the committee is that the Merchant Discount Rate (MDR) charge on the transactions should be abolished.
“We are confident that our recommendations will be incorporated in the budget…we have given our recommendations. It is now up to the government and RBI to assess and implement them”, Naidu said to the media after presenting the interim report to PM Narendra Modi.
“Consider levy of banking cash transaction tax (BCTT) on transactions of Rs 50000 and above…consider a cap on the maximum allowable limit of cash in all types of larger ticket size transactions”, the committee on digital payments said. The digital transactions have increased in the country since the masses have been left with no other choice. The government has bee constantly pushing the use of digital platforms for making transactions and developing India into a cashless society.