The government will push digital payments afresh as they appear to have lost momentum a year after the promotion of cashless transactions was announced as a key policy objective of demonetisation.
As improved suppl,y has made cash the preferred mode of payment again, the government plans to incentivise apps such as BHIM and the Bharat Bill Payment System (BBPS) — the interface for utility payments — and make digital payments easier, according to a ministry note.
The incentives could include cashback and reward points for BHIM users. As competition intensifies among private mobile-wallet operators, the government is looking to promote BHIM while ensuring compliance with a strict cyber security protocol.
The note presented last week by the ministry of electronics and information technology to Parliament’s standing committee on finance detailed a five-step road map to push e-transactions.
“Digital payments to be made visibly cheaper than cash,” the note said. About 99 percent of remonetisation of the banking system was complete by August, according to RBI data.
The Centre also wants to launch a “syndicated campaign” with banks, departments and states for growth of digital payments.
The government argues that digital payments will facilitate financial inclusion and easier access to credit apart from ensuring transparent fund flows and a reduction in the cost of cash.
“The government is looking at strengthening the digital payment infrastructure to push more and more people towards it,” said a government official part of the discussion on e-payment incentives to HT.
