National Payments Corporation of India (NPCI), the governing body of Unified Payment Interface (UPI) - India's prominent digital payment network - has announced it touched a record high of Rs 14.3 trillion in terms of value and&nbsp;9.41 billion in volume&nbsp;in May.&nbsp;

The numbers are a significant uptick from April when the platform recorded 8.89 billion transactions worth Rs 14.07 trillion.&nbsp;

Data released by the NPCI&nbsp;showed that approximately Rs 3.96 trillion&nbsp;worth of transactions took place in the final 10 days of May.

“Celebrating a milestone moment! We've crossed a phenomenal 9 billion transactions on UPI in the month of May’23, &amp; it's all thanks to you, India! Together, we are shaping the future of payments. Let's continue this journey of growth and innovation!” NPCI tweeted.&nbsp;

According to several estimates, UPI is projected to account for 90 per cent of the digital payments over the next five years.&nbsp;

<a href="https://www.wionews.com/videos/upi-to-take-over-90-of-retail-digital-payments-in-india-597688">WATCH |&nbsp;UPI to take over 90% of retail digital payments in India</a>

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A recent report by&nbsp;PwC India titled 'The Indian Payments Handbook – 2022-27', has projected that&nbsp;UPI will achieve a groundbreaking milestone of 1 billion daily transactions by 2026-27. In the&nbsp;2022-23, UPI accounted for 75 per cent of the total transaction volume, signifying a massive shift towards digital payments.

With a compounded annual growth rate (CAGR) of 50 per cent, the total number of online transactions is projected to surge from 103 billion in FY 2022-23 to 411 billion in FY 2026-27.

UPI transactions, in particular,&nbsp;are expected to experience a substantial rise from 83.71 billion in 2022-23 to a staggering 379 billion transactions by 2026-27.

<h2>UPI's introduction in India</h2>

It was in 2016 that NPCI introduced the revolutionary UPI system. PhonePe and PayTM were some of the first platforms to integrate UPI into its system. A year later, several competitors followed the suit and since then, UPI has transformed into a behemoth that even foreign nations are looking to get their hands on.

Singapore and Bhutan have already adopted UPI, with a few more countries waiting to join the bandwagon.&nbsp;

One of the biggest USPs of UPI is its open architecture which allows seamless integration. Users can link their bank accounts directly and initiate transactions effortlessly.&nbsp;

<a href="https://www.wionews.com/india-news/india-upi-transactions-to-cost-from-april-know-what-it-means-for-you-576840">Also read |&nbsp;India: UPI transactions to cost from April. Know what it means for you</a>

This interoperability eliminated the need for multiple payment apps, making UPI an attractive choice for consumers and businesses.

In a&nbsp;bid to further boost digital payments, India's central bank recently allowed RuPay credit cards to be linked to UPI. This was to enable customers to link their credit cards and pay via UPI.

(With inputs from agencies)

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National Payments Corporation of India (NPCI), the governing body of Unified Payment Interface (UPI) - India's prominent digital payment network - has announced it touched a record high of Rs 14.

National Payments Corporation of India (NPCI), the governing body of Unified Payment Interface (UPI) - India's prominent digital payment network - has announced it touched a record high of Rs 14.3 trillion in terms of value and 9.41 billion in volume in May. The numbers are a significant uptick from April when the platform recorded 8.89 billion transactions worth Rs 14.07 trillion. Data released by the NPCI showed that approximately Rs 3.96 trillion worth of transactions took place in the final 10 days of May. “Celebrating a milestone moment! We've crossed a phenomenal 9 billion transactions on UPI in the month of May’23, & it's all thanks to you, India! Together, we are shaping the future of payments. Let's continue this journey of growth and innovation!” NPCI tweeted. According to several estimates, UPI is projected to account for 90 per cent of the digital payments over the next five years. WATCH | UPI to take over 90% of retail digital payments in India × A recent report by PwC India titled 'The Indian Payments Handbook – 2022-27', has projected that UPI will achieve a groundbreaking milestone of 1 billion daily transactions by 2026-27. In the 2022-23, UPI accounted for 75 per cent of the total transaction volume, signifying a massive shift towards digital payments. With a compounded annual growth rate (CAGR) of 50 per cent, the total number of online transactions is projected to surge from 103 billion in FY 2022-23 to 411 billion in FY 2026-27. UPI transactions, in particular, are expected to experience a substantial rise from 83.71 billion in 2022-23 to a staggering 379 billion transactions by 2026-27. UPI's introduction in India It was in 2016 that NPCI introduced the revolutionary UPI system. PhonePe and PayTM were some of the first platforms to integrate UPI into its system. A year later, several competitors followed the suit and since then, UPI has transformed into a behemoth that even foreign nations are looking to get their hands on. Singapore and Bhutan have already adopted UPI, with a few more countries waiting to join the bandwagon. One of the biggest USPs of UPI is its open architecture which allows seamless integration. Users can link their bank accounts directly and initiate transactions effortlessly. Also read | India: UPI transactions to cost from April. Know what it means for you This interoperability eliminated the need for multiple payment apps, making UPI an attractive choice for consumers and businesses. In a bid to further boost digital payments, India's central bank recently allowed RuPay credit cards to be linked to UPI. This was to enable customers to link their credit cards and pay via UPI. (With inputs from agencies) WATCH WION LIVE HERE:

UPI records 9 billion transactions in May worth Rs 14.3 trillion

India’s National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI) are reportedly in the midst of deciding whether the unlimited transactions carried out via Google Pay, PhonePe and others should continue or not. The NPCI may soon implement their proposed volume cap for third-party app providers (TPAP), said a report by ANI.&nbsp;

This comes after the NCPI sought the approval of a proposal reportedly sent earlier this month on wanting to impose a 30 per cent volume cap. Currently, there is no transaction cap on any of the UPI-based applications including Paytm, PhonePe, Google Pay and so on. However, Google Pay and PhonePe are currently dominating the market with nearly 80 per cent of the shares. Therefore, the proposal was reportedly sent by NPCI to avert the risk of a monopoly.&nbsp;

ALSO READ:&nbsp;<a href="https://www.wionews.com/india-news/govt-wont-charge-for-services-upi-will-remain-free-indian-finance-ministry-508955">Govt won't charge for services, UPI will remain free: Indian finance ministry</a>

The deadline for this proposed implementation is December 31, however, reports suggest that no decision has been made yet while some industry stakeholders want the NCPI to extend the last date. Paytm will not get affected by the transaction cap because it is owned by Paytm Payments Bank Limited, an NPCI-certified service provider and issuer bank transactions as opposed to being a third-party app provider, said a report by ANI.&nbsp;

ALSO WATCH:&nbsp;<a href="https://www.wionews.com/videos/indias-upi-digital-payments-near-5-billion-464522">India's UPI digital payments near 5 billion</a>

In a statement, the Paytm Payments Bank spokesperson said, the proposed implementation of capping the UPI market will be “hugely beneficial” for the UPI ecosystem and bolster the growth of digital payments and make it “more accessible”. Adding that this move will also democratise the platform for people and end the market concentration risk.&nbsp;

ALSO READ:&nbsp;<a href="https://www.wionews.com/india-news/paytm-shares-slump-13-per-cent-after-rbis-restrictions-on-payments-bank-462206">Paytm shares slump 13 per cent after RBI's restrictions on payments bank</a>

Reportedly, the uncertainty regarding the issue of UPI market limit implementation may be resolved by the end of December. The order to cap the volume of transactions at 30 per cent of the total UPI transactions was first presented by the NCPI in 2020. Subsequently, the agency had given the existing third-party app providers two years to comply with the directive. However, the companies have reportedly failed to reduce their market shares and continue to exceed the 30 per cent cap since.&nbsp;

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India’s National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI) are reportedly in the midst of deciding whether the unlimited transactions carried out via Google Pay, PhonePe and others should continue or not.

India’s National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI) are reportedly in the midst of deciding whether the unlimited transactions carried out via Google Pay, PhonePe and others should continue or not. The NPCI may soon implement their proposed volume cap for third-party app providers (TPAP), said a report by ANI. This comes after the NCPI sought the approval of a proposal reportedly sent earlier this month on wanting to impose a 30 per cent volume cap. Currently, there is no transaction cap on any of the UPI-based applications including Paytm, PhonePe, Google Pay and so on. However, Google Pay and PhonePe are currently dominating the market with nearly 80 per cent of the shares. Therefore, the proposal was reportedly sent by NPCI to avert the risk of a monopoly. ALSO READ: Govt won't charge for services, UPI will remain free: Indian finance ministry The deadline for this proposed implementation is December 31, however, reports suggest that no decision has been made yet while some industry stakeholders want the NCPI to extend the last date. Paytm will not get affected by the transaction cap because it is owned by Paytm Payments Bank Limited, an NPCI-certified service provider and issuer bank transactions as opposed to being a third-party app provider, said a report by ANI. ALSO WATCH: India's UPI digital payments near 5 billion In a statement, the Paytm Payments Bank spokesperson said, the proposed implementation of capping the UPI market will be “hugely beneficial” for the UPI ecosystem and bolster the growth of digital payments and make it “more accessible”. Adding that this move will also democratise the platform for people and end the market concentration risk. ALSO READ: Paytm shares slump 13 per cent after RBI's restrictions on payments bank Reportedly, the uncertainty regarding the issue of UPI market limit implementation may be resolved by the end of December. The order to cap the volume of transactions at 30 per cent of the total UPI transactions was first presented by the NCPI in 2020. Subsequently, the agency had given the existing third-party app providers two years to comply with the directive. However, the companies have reportedly failed to reduce their market shares and continue to exceed the 30 per cent cap since. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India: Google Pay, PhonePe and other UPI apps may impose transaction limit; Paytm to remain unaffected

India witnessed the highest number of real-time online transactions in 2020, trumping China and United States.

At least 25.5 billion real-time transactions were recorded in India over the last year, followed by 15.7 billion in China, 6 billion in South Korea, 5.2 billion in Thailand, followed by the United Kingdom with 2.8 billion transactions.

US barely made it to the top 10 list at number 9 nine with 1.2 billion transactions.

For instant payments, India’s volume share was 15.6 per cent. For other electronic payments, it stood at 22.9 per cent, based on the report released by ACI Worldwide, a UK-based payments system company. Even then, paper-based payments remain important in India, with a 61.4 per cent share.

Also read:&nbsp;<a href="http://13.235.153.162/world/following-china-and-eu-japan-set-to-issue-digital-vaccine-passports-373795" hreflang="en">Following China and EU, Japan set to issue digital vaccine passports</a>

But predictions suggest that this will change by 2025. Instant payments volume is set to increase to over 37 per cent, while the share of other electronic payments is likely to grow to over 34 per cent.

Naturally, the share of paper-based transactions is set to decline below 28 per cent. Real-time payments’ share is expected to exceed 50 per cent by 2024.

Also read:&nbsp;<a href="http://13.235.153.162/science/digital-artwork-by-humanoid-robot-sophia-sells-at-auction-for-nearly-700000-373064" hreflang="en">Digital artwork by humanoid robot Sophia sells at auction for nearly $700,000</a>

Pre-Paid Instruments (PPI) and the Universal Payment Interface (UPI) have helped make digitisation mainstream in India.

UPI transactions have continued to grow in the country on a month-on-month basis. In March 2021, the value was up to INR 4.25 lakh crore from INR 4.25 lakh crore in February, based on data released by the National Payments Corporation of India (NPCI).

India witnessed the highest number of real-time online transactions in 2020, trumping China and United States. At least 25.5 billion real-time transactions were recorded in India over the last year, followed by 15.

India witnessed the highest number of real-time online transactions in 2020, trumping China and United States. At least 25.5 billion real-time transactions were recorded in India over the last year, followed by 15.7 billion in China, 6 billion in South Korea, 5.2 billion in Thailand, followed by the United Kingdom with 2.8 billion transactions. US barely made it to the top 10 list at number 9 nine with 1.2 billion transactions. For instant payments, India’s volume share was 15.6 per cent. For other electronic payments, it stood at 22.9 per cent, based on the report released by ACI Worldwide, a UK-based payments system company. Even then, paper-based payments remain important in India, with a 61.4 per cent share. Also read: Following China and EU, Japan set to issue digital vaccine passports But predictions suggest that this will change by 2025. Instant payments volume is set to increase to over 37 per cent, while the share of other electronic payments is likely to grow to over 34 per cent. Naturally, the share of paper-based transactions is set to decline below 28 per cent. Real-time payments’ share is expected to exceed 50 per cent by 2024. Also read: Digital artwork by humanoid robot Sophia sells at auction for nearly $700,000 Pre-Paid Instruments (PPI) and the Universal Payment Interface (UPI) have helped make digitisation mainstream in India. UPI transactions have continued to grow in the country on a month-on-month basis. In March 2021, the value was up to INR 4.25 lakh crore from INR 4.25 lakh crore in February, based on data released by the National Payments Corporation of India (NPCI).

India trumps China, US with over 25 billion digital transactions in 2020

The Central government has announced multiple steps to boost digital transactions.

Finance Minister Nirmala Sitharaman, who launched eBkry for online auction of assets attached by banks, on Saturday also held a meeting with the bankers and assured of protection for prudent commercial decisions taken by them.

In order to strengthen the digital payment eco-system and move towards less-cash economy, Finance Minister Sitharaman in her budget speech of 2019-20 had announced that business establishments with annual turnover of more than Rs 50 crore shall offer low-cost digital modes of payment such as BHIM UPI, Aadhaar Pay, Debit cards, NEFT, and RTGS to their customers, and no charge or Merchant discount rates (MDR) shall be imposed on customers as well as merchants.

The meeting was attended by chiefs of public sector banks (PSBs), chief executive of Indian Banks` Association and representatives of leading private sector banks.

Finance Secretary, Revenue Secretary, Economic Affairs Secretary, Electronics and Information Technology Secretary, CBI Director, RBI representative and the chief executive officer of NPCI were also present in the meeting, said an official statement.

According to the statement, the Department of Revenue (DoR) will notify RuPay and UPI as the prescribed mode of payment for undertaking digital transactions without any MDR.

Accordingly, all companies with a turnover of Rs 50 crore or more shall be mandated by DoR to provide the facility of payment through RuPay Debit card and UPI QR code to their customers.

The statement said that extensive reforms carried out by the government have restored banks to health, with the gross NPAs of PSBs declining from Rs 8.96 lakh crore in March 2018 to Rs 7.27 lakh crore in September 2019, their provision coverage ratio rising to their highest level in seven years, and banks returning to profitability, with as many as 13 banks reporting profits in H1FY20.

With the Essar resolution decision, banks have recovered Rs 38,896 crore, in addition to Rs 4.53 lakh crore recovered in the last four and a half years.

PSBs have attached assets worth over Rs 2.3 lakh crore over the last three financial years. eBkry, a common e-auction platform, is equipped with property search features and navigational links to all PSBs e-auction sites, provides single-window access to information on properties up for e-auction as well as the facility for comparison of similar properties, and also contains photographs and videos of uploaded properties.

As on 27.12.2019, a total of 35,000 properties had been uploaded on the platform by PSBs.

The bankers were assured that prudent commercial decision-making would be protected. To allay any apprehensions in this regard and take feedback, Director, CBI also attended the meeting.

It was decided that CBI would develop a mechanism as recently introduced for income tax notices so that CBI notices carry a registration number to avoid any scope for unauthorised communication and consequent harassment.

While pursuing criminal action against those responsible, the agency shall be sensitive to the distinction between genuine commercial failures and culpability.

It was also noted that there is a need for preserving the value of the business enterprise by treating it on a separate footing from the culpability of individuals if any.

Talking about the credit outreach by banks, PSBs have sanctioned over 11.68 lakh Repo-linked loans to retail borrowers for home, vehicle, education/personal loans and to micro and small enterprises, amounting to Rs 1.32 lakh crore post the Finance Minister`s announcements on 23.8.2019 on measures to boost the economy.

In order to address the working capital needs of MSMEs on account of stress arising from delayed payments, PSBs are offering up to 25 per cent enhancement in working capital limits for standard MSME accounts as a Standby Line of Credit and have launched a MSME outreach initiative for restructuring of stressed standard assets as needed on priority and in a timely manner, besides providing new term loans, payment solutions for delayed receivables, bill discounting and trade finance.

A total of 5,38,440 MSME loan accounts have been restructured in terms of RBI`s circular dated 1.1.2019, out of which 1,65,104 accounts have been restructured since October 2019, said the statement.&nbsp; 
&nbsp;

The Central government has announced multiple steps to boost digital transactions. Finance Minister Nirmala Sitharaman, who launched eBkry for online auction of assets attached by banks, on Saturday also held a meeting with the bankers and assured of protection for prudent commercial decisions taken by them.

The Central government has announced multiple steps to boost digital transactions. Finance Minister Nirmala Sitharaman, who launched eBkry for online auction of assets attached by banks, on Saturday also held a meeting with the bankers and assured of protection for prudent commercial decisions taken by them. In order to strengthen the digital payment eco-system and move towards less-cash economy, Finance Minister Sitharaman in her budget speech of 2019-20 had announced that business establishments with annual turnover of more than Rs 50 crore shall offer low-cost digital modes of payment such as BHIM UPI, Aadhaar Pay, Debit cards, NEFT, and RTGS to their customers, and no charge or Merchant discount rates (MDR) shall be imposed on customers as well as merchants. The meeting was attended by chiefs of public sector banks (PSBs), chief executive of Indian Banks` Association and representatives of leading private sector banks. Finance Secretary, Revenue Secretary, Economic Affairs Secretary, Electronics and Information Technology Secretary, CBI Director, RBI representative and the chief executive officer of NPCI were also present in the meeting, said an official statement. According to the statement, the Department of Revenue (DoR) will notify RuPay and UPI as the prescribed mode of payment for undertaking digital transactions without any MDR. Accordingly, all companies with a turnover of Rs 50 crore or more shall be mandated by DoR to provide the facility of payment through RuPay Debit card and UPI QR code to their customers. The statement said that extensive reforms carried out by the government have restored banks to health, with the gross NPAs of PSBs declining from Rs 8.96 lakh crore in March 2018 to Rs 7.27 lakh crore in September 2019, their provision coverage ratio rising to their highest level in seven years, and banks returning to profitability, with as many as 13 banks reporting profits in H1FY20. With the Essar resolution decision, banks have recovered Rs 38,896 crore, in addition to Rs 4.53 lakh crore recovered in the last four and a half years. PSBs have attached assets worth over Rs 2.3 lakh crore over the last three financial years. eBkry, a common e-auction platform, is equipped with property search features and navigational links to all PSBs e-auction sites, provides single-window access to information on properties up for e-auction as well as the facility for comparison of similar properties, and also contains photographs and videos of uploaded properties. As on 27.12.2019, a total of 35,000 properties had been uploaded on the platform by PSBs. The bankers were assured that prudent commercial decision-making would be protected. To allay any apprehensions in this regard and take feedback, Director, CBI also attended the meeting. It was decided that CBI would develop a mechanism as recently introduced for income tax notices so that CBI notices carry a registration number to avoid any scope for unauthorised communication and consequent harassment. While pursuing criminal action against those responsible, the agency shall be sensitive to the distinction between genuine commercial failures and culpability. It was also noted that there is a need for preserving the value of the business enterprise by treating it on a separate footing from the culpability of individuals if any. Talking about the credit outreach by banks, PSBs have sanctioned over 11.68 lakh Repo-linked loans to retail borrowers for home, vehicle, education/personal loans and to micro and small enterprises, amounting to Rs 1.32 lakh crore post the Finance Minister`s announcements on 23.8.2019 on measures to boost the economy. In order to address the working capital needs of MSMEs on account of stress arising from delayed payments, PSBs are offering up to 25 per cent enhancement in working capital limits for standard MSME accounts as a Standby Line of Credit and have launched a MSME outreach initiative for restructuring of stressed standard assets as needed on priority and in a timely manner, besides providing new term loans, payment solutions for delayed receivables, bill discounting and trade finance. A total of 5,38,440 MSME loan accounts have been restructured in terms of RBI`s circular dated 1.1.2019, out of which 1,65,104 accounts have been restructured since October 2019, said the statement.

Centre announces multiple steps to boost digital transactions

The government is working on a proposal to incentivise digital transactions by providing cashback to businesses and price benefits to consumers, a source said.

As per the proposal being worked out by the Revenue Department, consumers paying through the digital mode would be offered a discount over the maximum retail price (MRP). The discount would be capped at Rs 100.

Businesses, on the other hand, could get a cashback based on the quantum of turnover through the digital mode.

The proposals to encourage digital transactions are likely to be placed before the GST Council, chaired by Finance Minister Arun Jaitley and comprising state ministers, on May 4.

According to the source, the issue of providing an incentive for the digital transaction was discussed at a meeting held in the Prime Minister's Office.

During the meeting, three possible modes of incentivising businesses to go in for digital transactions were discussed. Apart from cash-backs, a proposal to allow businesses to obtain tax credit on the basis of turnover obtained through digital mode was also discussed.

This would have worked like the input tax credit mechanism wherein businesses can credit for taxes paid on raw materials.

Besides, the option of allowing businesses to offset their GST liability up to a threshold for using digital transaction was also deliberated.

The source said the Revenue Department has zeroed in on the option of cashback to businesses based on a threshold of digital transaction. This would be easier to implement and cannot be misused by unscrupulous elements.&nbsp;

As a matter of precaution, the department will ascertain the veracity of the digital transactions reported by the businesses and then credit the cashback to their bank account.

During the PMO meeting, it was also discussed if any incentives could be given for digital transaction from the direct taxes side.

The direct tax department, the source said, has outlined the steps it had taken to discourage cash dealings. Besides, for small businesses opting for presumptive taxation scheme, it had reduced the rate for calculation of deemed profit from 8 per cent to 6 per cent in respect of the amount of total turnover or gross receipts received through banking channel/digital means.

The source said since the incentives would have been on the basis of the turnover of the businesses, it was felt that the indirect tax department would be better placed to incentivise the businesses and hence the GST Council would have to give a final go ahead. &nbsp;

As per the proposal, consumers paying through the digital mode would be offered a discount over the MRP

The government is working on a proposal to incentivise digital transactions by providing cashback to businesses and price benefits to consumers, a source said. As per the proposal being worked out by the Revenue Department, consumers paying through the digital mode would be offered a discount over the maximum retail price (MRP). The discount would be capped at Rs 100. Businesses, on the other hand, could get a cashback based on the quantum of turnover through the digital mode. The proposals to encourage digital transactions are likely to be placed before the GST Council, chaired by Finance Minister Arun Jaitley and comprising state ministers, on May 4. According to the source, the issue of providing an incentive for the digital transaction was discussed at a meeting held in the Prime Minister's Office. During the meeting, three possible modes of incentivising businesses to go in for digital transactions were discussed. Apart from cash-backs, a proposal to allow businesses to obtain tax credit on the basis of turnover obtained through digital mode was also discussed. This would have worked like the input tax credit mechanism wherein businesses can credit for taxes paid on raw materials. Besides, the option of allowing businesses to offset their GST liability up to a threshold for using digital transaction was also deliberated. The source said the Revenue Department has zeroed in on the option of cashback to businesses based on a threshold of digital transaction. This would be easier to implement and cannot be misused by unscrupulous elements. As a matter of precaution, the department will ascertain the veracity of the digital transactions reported by the businesses and then credit the cashback to their bank account. During the PMO meeting, it was also discussed if any incentives could be given for digital transaction from the direct taxes side. The direct tax department, the source said, has outlined the steps it had taken to discourage cash dealings. Besides, for small businesses opting for presumptive taxation scheme, it had reduced the rate for calculation of deemed profit from 8 per cent to 6 per cent in respect of the amount of total turnover or gross receipts received through banking channel/digital means. The source said since the incentives would have been on the basis of the turnover of the businesses, it was felt that the indirect tax department would be better placed to incentivise the businesses and hence the GST Council would have to give a final go ahead.

In digital push, government plans cashback to businesses, discount to consumers

Ahead of the first anniversary of demonetisation, Finance Minister Arun Jaitley said today that excessive cash in the economy has &quot;its own cost&quot; and India is gradually moving towards digital transactions.

Prime Minister Narendra Modi announced on November 8 last year the scrapping of old Rs 500 and Rs 1,000 notes as part of the government&#39;s efforts to fight black money and corruption.

Following that, the Centre has been pushing for digital payments and transactions through the banking channel so as to promote a &#39;less-cash&#39; economy.

However, the opposition parties have criticised demonetisation and plan to observe November 8 as &quot;black day&quot; across the country.

Jaitley said some people have a problem with accepting the fact that transactions through the digital mode and banking instruments are going to witness a rapid growth as compared to cash dealings.

At the inauguration of the new building of Punjab National Bank (PNB) head office here, Jaitley said: &quot;Excessive dependence on cash has its own cost.

&quot;It is not just cost but there is a curse of cash. It has an impact on both society and economy.&quot;

He said there is a clear change taking place as to how India and Indians are spending money and the change is only in one direction.

It will not happen abruptly but the movement towards a less-cash economy is very clear, he said, adding that it will lead to more deposits with banks, increasing their lending ability at affordable rates.

Banking is the lifeline of the economy and it will gain further importance in the coming days, he said.

A healthy banking system will help support growth of the economy, he added.

Jaitley also launched two products of the PNB -- Rupay Credit Card and e-Rupaya.

Minister of State for Finance Shiv Pratap Shukla asked banks to focus on rural India and work towards improving customer experience.

He also said that management of banks should focus on the welfare of their employees.&nbsp;

Prime Minister Narendra Modi announced on November 8 last year the scrapping of old Rs 500 and Rs 1,000 notes as part of the government's efforts to fight black money and corruption.

Ahead of the first anniversary of demonetisation, Finance Minister Arun Jaitley said today that excessive cash in the economy has "its own cost" and India is gradually moving towards digital transactions. Prime Minister Narendra Modi announced on November 8 last year the scrapping of old Rs 500 and Rs 1,000 notes as part of the government's efforts to fight black money and corruption. Following that, the Centre has been pushing for digital payments and transactions through the banking channel so as to promote a 'less-cash' economy. However, the opposition parties have criticised demonetisation and plan to observe November 8 as "black day" across the country. Jaitley said some people have a problem with accepting the fact that transactions through the digital mode and banking instruments are going to witness a rapid growth as compared to cash dealings. At the inauguration of the new building of Punjab National Bank (PNB) head office here, Jaitley said: "Excessive dependence on cash has its own cost. "It is not just cost but there is a curse of cash. It has an impact on both society and economy." He said there is a clear change taking place as to how India and Indians are spending money and the change is only in one direction. It will not happen abruptly but the movement towards a less-cash economy is very clear, he said, adding that it will lead to more deposits with banks, increasing their lending ability at affordable rates. Banking is the lifeline of the economy and it will gain further importance in the coming days, he said. A healthy banking system will help support growth of the economy, he added. Jaitley also launched two products of the PNB -- Rupay Credit Card and e-Rupaya. Minister of State for Finance Shiv Pratap Shukla asked banks to focus on rural India and work towards improving customer experience. He also said that management of banks should focus on the welfare of their employees.

India moving towards digital economy post-demonetisation: Arun Jaitley

Jaitley said small enterprises with an annual turnover of up to 20 million rupees could save up to 30 per cent in tax payments

Indian finance minister Arun Jaitley on Tuesday addressed the media and said the government will offer tax incentives to small scale businesses engaged in cashless transactions, news agency Reuters reported. The incentives will be applicable to small scale businesses with a turnover of up to 20 million rupees ($294,000). Jaitley said the move would enable such businesses to save up to 30 per cent in tax payments, Reuters reported. He also said further amendments had been made to how small traders are taxed in order to boost digital payment, the Financial Express reported. Jaitley further said that anybody who still has old currency must deposit the amount with his or her bank at one go, The Financial Express reported. If somebody goes to the banks every day, it raises questions, Jaitley said. Since the government's demonetisation of India's 500- and 1,000-rupee note, the government has come out with a raft of incentives to encourage cashless transactions. It has also come out with a host of orders governing how the old notes are to be exchanged for new currency. (WION with inputs from Reuters)

India to offer tax breaks to small businesses that go cashless: Fin Min

digital-transactions

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