what is the main objectives to promote digital transaction . please give this answer
Answers
Answer:
Improve the ease of conducting card/digital transactions for an individual. Reduce the risks and costs of handling cash at the individual level. Reduce costs of managing cash in the economy.
Answer:
Digital transactions are defined as transactions in which the customer authorizes the transfer of money through electronic means, and the funds flow directly from one account to another. These accounts could be held in banks, or with entities/ providers. These transfers could be done through means of cards (debit/credit), mobile wallets, mobile apps, net banking, Electronic Clearing Service (ECS), National Electronic Fund Transfer (NEFT), Immediate Payment Service (IMPS), pre-paid instruments or other similar means.
The Union Cabinet has given its approval for introduction of steps for promotion of payments through cards and digital means. The move aims at reducing cash transactions. Several short term (to be implemented within one year) and medium term measures (to be implemented within two years) have been approved for implementation by the Government Ministries/ Departments/ Organisations. The Guidelines are as follows.
Objectives:
Improve the ease of conducting card/digital transactions for an individual.
Reduce the risks and costs of handling cash at the individual level.
Reduce costs of managing cash in the economy.
Build a transactions history to enable improved credit access and financial inclusion.
Reduce tax avoidance.
Reduce the impact of counterfeit money.
Scope:
Provide access to financial payment services to every citizen along with ability to conduct card / digital transactions.
Digitalize Government collections by equipping each collection point with a method to accept card/digital payments.
Migrate payment transactions from cash dominated to non-cash through incentivization of card digital transactions and disincentivization of cash based transactions.
Enhance acceptance infrastructure in the country to promote digital transactions.
Encourage corporate, institutions and merchant, establishments to facilitate card / digital payments.
Goal:
The goal of the proposed policy changes is to provide the necessary incentives to use digital financial transactions to replace the use of cash-either in government transactions, or in regular commerce over a period of time through policy intervention.