Why these Incentives?
Nearly 4.5 crore customers buy petrol or diesel in such petrol pumps every day totalling to around 1800 crore rupees. Only 20% of these transactions were digital before demonetisation and this number has risen to around 40-50% in the last 2 months. This incentive has the potential to motivate an extra 30% or more customers to move toward digital transactions. This will reduce the cash requirement of nearly 2 lakh crores per year at just petrol pumps.
This will benefit farmers from 1 lakh villages covering a total population of nearly 75 crore people who will have facility to transact cashlessly in their villages for their agricultural needs.
Nearly 80 lakh Indians use seasonal or monthly passes on suburban railways primarily through cash payments worth almost 2000 crores each year. As more and more passengers shift to digital means, this number is expected to come down.
Nearly 14 lakh passengers buy railway tickets each day with around 58% being bought online these days. With this incentive more people are expected to shift to digital payment methods which would bring nearly 11 lakh passengers who take the trains each day under this accidental insurance scheme.
A 8% discount on life and 10% discount on General insurance policies would save a lot of money for the common man.
Cost of procuring and maintaining these POS Terminals is considered one of the main reasons why small merchants and traders don’t want to go cashless. By capping the monthly fees on POS machines issued by public sector banks, the government is directly helping bring more merchants into the digital payment umbrella.