Government Puts New Measures For Digital PaymentsSince the demonetization announcement, the government has taken new measures to push digital payment. Here’s a look at some of these steps announced by the government on Monday.

1. Going onwards, all toll plazas in national highways will receive payments through credit or debit cards and e-wallet besides accepting old currency notes of Rs500 till 15th December. Toll collection across all the national highways has resumed with effect from midnight of 2nd December.

2. The finance ministry on Monday asked all government departments to make electronic payments to suppliers, contractors or institutions if the order value exceeds Rs5,000. To attain the goal of complete digitization

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of government payments, the ministry has lowered the threshold for making such payments from Rs10,000 to Rs5,000, it said in a statement.

3. The government on Monday nudged shop owners to use debit cards, saying it will reduce cash handling costs while digital transaction records will help them seek more funds from banks.

4. Government has asked its employees to maximize use of debit cards for personal transactions and become ‘ambassadors’ to encourage digital payments.

5. The finance ministry has also asked government departments to co-operate with their accredited banks and set up special camps to ensure that all its employees have debit cards. It also asked other ministries/departments to issue similar advisories to their attached offices, PSUs and autonomous bodies.

6. The road transport ministry has asked vehicle manufacturers to provide a digital tag on all new cars for e-payments at toll plazas and check posts throughout the country.

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Other Suggested Steps

Measures need to be taken for forex dealers who have enough liquidity to meet the requirements of foreign visitors and the limit of Rs 5,000 for exchange by visiting foreigners should be reviewed to reduce the inconvenience being caused to them.

Call for RBI to issue guidelines to banks to raise the overdraft limits of current accounts (currently Rs 50,000) to help businesses tide over the currency shortage.

Government should consider leveraging the greater network of systematically important NBFCs in rural markets to withdraw the demonetised currency with KYC documents, for pre-existing loans of duly registered farm equipment loans.

The government is seeking a long term plan to re-engineer human souls and minds as much as socio-economic realities. Also, risk rating of India will improve that will have a positive impact on foreign direct investment in key sectors. 

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