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Draft Proposals for Facilitating Electronic Transactions

Start Date :

Jun 16, 2015

Last Date :

Jun 29, 2015

17:00 PM IST (GMT +5.30 Hrs)

Submission Closed

The Finance Minister in his budget speech for the Union Budget 2015-16 made the following announcement: ...

The Finance Minister in his budget speech for the Union Budget 2015-16 made the following announcement:
“One way to curb the flow of black money is to discourage transactions in cash. Now that a majority of Indians has or can have, a RUPAY debit card. I therefore, proposes to introduce soon several measure that will incentivize credit or debit card transactions and disincentivize cash transaction”.
Accordingly, draft proposals for facilitating electronic transactions (E-transactions) have been prepared. Comments and views are invited on the Draft Proposals.
Draft Proposals For Facilitating Electronic Transactions (The Proposals placed below are only at the draft stage and are being placed here to obtain public opinion. The proposals as they stand at this stage, do not imply any commitment from the government)
The last date to share your views is 29 June, 2015 by 5:00 p.m.

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Showing 1250 Submission(s)

Pratap R Reddy 11 years 3 weeks ago

Independent organisation: Fixing the proportion of acceptance devices by card issuing banks will result in a lopsided market scenario. For instance 42% of the debit cards in the country are being issued by SBI and its associates. To avoid any such undue advantage to any one particular bank, the approach shall be drastically changed and an independent organisation shall deploy the acceptance devices while regional settlement can be entrusted one identified bank.

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DEEPJYOTI CHAUDHURI 11 years 3 weeks ago

The draft proposal on electronic transaction is a great measure to curb black money transactions, tax avoidance & reduce corruption. However, the following points must be considered to make India a cashless economy: Reduction of service tax, VAT, surcharge & luxury tax on non-cash transactions No charges on IMPF & other bank transfers User controlled dynamic spend limits on Debit cards Alternative methods for 2 factor authentication Install NFC supported machines at POS

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Pratap R Reddy 11 years 3 weeks ago

Again, those who are capable of doing such high ticket transactions will always try to beat the system. Hence, to enhance the gamut of cache of high ticket transactions the mandatory amount shall be reduced to reasonable levels of market transactions. To avoid split transactions, the velocity count for sensitive type of merchants shall be rigorously implemented.

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Pratap R Reddy 11 years 3 weeks ago

1 lac too high: The mandatory mode of card payment for amounts exceeding INR. 1 lac is too high a level as today’s (as per RBI ‘s stats of 2014) avg . transaction value of a credit card is only Rs. 3416.31 and Debit card is Rs. 1542.35. Going by my own experience except in a few 5 star hotels and high end jewellery shops the transaction value hardly crosses 1 lac mark.

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Pratap R Reddy 11 years 3 weeks ago

Dis-incentivising excessive ATM usage: If one goes by 2014 statistics published by RBI, POS transactions form only 1/5 of the number of ATM transactions. That clearly reflects the age old Indian penchant for cash based transactions. To wean the customer from excessive usage of ATM, a few disincentives shall be introduced for such usage of ATM in addition to the incentives offered for other modes of electronic payments.

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Pratap R Reddy 11 years 3 weeks ago

VAT rebate to merchants: It should be on two parameters like 1.percentage of the value of the business on cards to total business 2.also the percentage of the no. of electronic transactions to total transactions so that merchants with a few high value transactions but less in number of transactions will not enjoy the undue advantage.

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Pratap R Reddy 11 years 3 weeks ago

High rate of Merchant commission: Certain aggregators of e-commerce in India have been charging very high merchant commission. It shall be regulated on priority with a cap on the maximum rate.

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Pratap R Reddy 11 years 3 weeks ago

The Royal Bank of Australia has pegged it at 50 basis points whereas SEPA (Single Euro Payments Area) has been inveigling the scheme owners to peg the intra-country interchange at 30 basis points which is sufficient to take care of the processing costs as per various research papers.

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