The government has given a relief to rural sectors while announcing the national rural bank NABARD to sanction Rs 21000crores to cooperative banks, making available new high-value currency notes available in 1.5 lakh post offices, doubling e-wallets’ capacity and paving a way for service charge free electronics transactions until December 31.
Exemption in service charge will benefit both people using smartphones or those who don’t
It means that there will be no service charge for using debit cards or booking railway tickets online until the announced date by the government. The benefit of this exemption will go to all the people using smartphones or those who haven’t smartphones. In India, around 65% people using basic feature phones.
A gushing effect of service charge reduction will lead to these free online transactions, economic affairs secretary Shaktikanta Das said today. Railways has already announced yesterday that there will be no service tax on online booking until December 31. A part for that, TRAI reduced USSD Charges to 50ps from Rs 1.50ps. These will benefit digital transaction through feature phones.
Government wants to promote digital transaction in rural areas
While addressing media Das said “The USSD charge reduction will be matched by telecom companies which are on board to waive even the remaining 50 ps. So for all digital finance transaction on feature phones, there will be no service charge until December 31”. He further added the other motive of government is to benefit farmers and to promote digital transaction.
“To ensure that farmers get credit and certain quantum of credit by way of cash (for wage payments, etc.), NABARD and RBI have also been advised to make the required cash available to district central cooperative banks,” said economic affairs secretary Shaktikanta Das today. Finance minister Arun Jaitley held a meeting with NABARD and RBI through video call and advised them to carry out entire activities slickly.
Soon all the ATMs across the Country will be recalibrated
Das informed that around 82,000 ATM across the country have been re-calibrated so far and soon all the ATMs will be recalibrated within a few days. He added that a Pilot project is ongoing in 20 that are using a new Unified Payment Interface mobile phone application. This app will not just making payments but also getting payments, in no time. The transaction limit in using this app is Rs 50,000