Govt announces discounts on petrol, rail tickets if you go digital

In a bid to promote cashless transactions, the government on Thursday announced a slew of measures to encourage digital payments while buying fuel, train tickets and insurance.

Incentivizing digital mode for payments, the government has waived service tax on card transactions of up to Rs 2,000. It has also announced 10 percent discount on use of digital mode for paying for RFID or fast-tags for highway toll.

Finance minister Arun Jaitley said there has been a movement towards digital transactions from cash transactions since the government announced its decision to invalidate existing Rs 500 and Rs 1,000 notes with effect from 9 November. “The government wants to increase the pace of this switchover,” he said at a press conference.

For petrol and diesel, a discount of 0.75 percent has been offered for payments through either credit/debit cards, e-wallets or mobile wallets. Similarly, a 10 percent discount will be available on the use of digital mode for paying for RFID or fast-tags for highway toll.

Online booking of railway tickets will get Rs 10 lakh accident insurance. Those using digital mode to pay for railway catering, accommodation, a retiring room will be entitled to a discount of 5 percent. Monthly and seasonal suburban railway tickets purchased through digital mode will get 0.5 percent discount.

The government also announced 10 percent and 8 percent discount in case of general and life insurance for buying a new policy or paying premium online via PSUs websites.

There is no end date (as of now) for these incentives, which will be notified over the next few days. The cost of these incentives will be borne by the respective government departments.

The other major announcements include two Point of Sale (PoS) machines each for one lakh villages with a population of less than 10,000. The exercise will be supported through financial inclusion fund. The government will also support regional rural banks and cooperative banks through NABARD to issue “Rupay Kisan Cards” to 4.32 crore Kisan Credit Card holders.