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Govt should absorb transaction charges to encourage digital payments: CAIT
In the wake of recently released RBI Data showing digital payments lower by 10.2 per cent in volume and 7 per cent lower by value in January 2017 in comparison to December 2016 as also increasing trend of usage of cash among Merchants & Consumers due to availability of cash, the Confederation of All India Traders (CAIT) has suggested the government to subsidise transaction charges directly to Banks and absolve either the Merchant or the consumer from the liability of paying such charges.

Transaction charges are one of the major deterrent in adoption of digital payments in the country since neither the merchant and nor the consumer is willing to pay transaction charges.

The CAIT said that the country was effectively going on the path of digital payments, but lack of structured planning, non- inclusion of stakeholders in digital payment initiative and in effective role of National Payments Council of India has brought a break on fore sighted vision of Prime Minister.

It suggested the government to hold Digital Payment Camps in commercial markets across the country for promotion of adoption of digital payments. Incentives to shopkeepers accepting payments in business transactions through digital payments will encourage traders to embrace e-payment system.

The recent proposal of RBI to subsidise charges on digital payments made for government revenue is not sufficient. All sorts of digital payments made either for personal expenditure or for business to business or for making payments of Government revenue should be included in the proposal to ensure faster adoption of digital payments in the country, said B.C. Bhartia, National President & Praveen Khandelwal, Secretary General of the CAIT.

Both leaders further said that another proposal of RBI prescribing different slabs of transaction charges will make the system more complicated and as such transaction charges as a whole should be subsidised by the Government directly to Banks.

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