ProMASS: Jan 24, 2017: Aiming to boost digital transactions, Chief Ministers’ Committee on demonetization has recommended abolition of the Merchant Discount Rate charges (MDR).
Among other recommendations, the Committee has also suggested putting a curb on large transaction. It is considering levying a tax, called banking cash transaction tax on transaction of Rs 50 thousand and above. Moreover, putting a cap on maximum allowable cash limit in all types of large transactions is another key recommendation of the Committee.
The Panel chaired by Andhra Pradesh Chief Minister Chandrababu Naidu submitted its interim report to the Prime Minister Narendra Modi in New Delhi this evening. The report has suggested to bring all government insurances, educational institutes, fertilizers, PDS and petroleum sectors within the ambit of digital payments.
After submitting the report Naidu said, the Committee wants Aadhaar-enabled micro ATM infrastructure in all 1.54 lakh post offices. He said the non-income tax payees and small merchants should be given a subsidy of Rs. 1,000 for purchasing smart phones. Notably, the committee, was constituted in November last year to prepare a road-map for transition to digital economy post demonetization.
