Union Budget 2017: Measures taken by Government for Digitalization in India

Union Budget 2017: Measures taken by Government for Digitalization in India

The government seems to be very serious in spreading digitalization across India. After demonetisation, Union Budget 2017 ready for further embargo black money and to promote digitization in India.

Here are some key points:

No Cash Transaction above Rs. 3 Lakh is allowed

As per the union budget 2017 presented by Mr. Arun Jaitley today, Government has banned the cash transaction above Rs. 3 Lakh. This could be looked as the government is making a serious push against the parallel economy. The demonetization and the ban on cash transaction may result in the end of the parallel economy which is equivalent almost no black money.

Duty Exempted on Various POS Machines and Iris Readers to Encourage Digital Payments

In order to push digital payments, Government has removed all duties such as basic customs duties, excise duties, countervailing duties, special additional duty on devices used in the process of cashless transactions like the point of sales machines, fingerprint readers etc. 

Expected Increase of Digital Transactions to Rs. 2500 Crore in FY 18

Finance Minister Arun Jaitley, is promoting cashless transaction and has set up a target of touching 2500 crore transactions in the year 2017-18 through UPI, USSD, Adhaar Pay, Credit/Debit Cards, IMPS Immediate Payment Service etc.

The launch of 2 Incentives to promote BHIM App.

“BHIM app is being used by 125 Lakh people” announced Finance Minister Arun Jaitley. BHIM is recently integrated with UID and also allowing payments via Aadhaar number. The 2 incentives that government is planning to launch are referral payments for individuals and the other will cashback for a merchant who accepts payments from BHIM. 

Also, government sets up a target to introduce 20 lakh Aadhaar POS terminal by September 2017.