Following the recent ban of high denomination currency in India, the government is taking various measures to help individuals, farmers to ease a cash crunch faced due to the ban of Rs 500 and Rs 1,000 notes.
Various steps have been taken to ensure availability of cash in rural branches of banks and 1.55 lakh post offices. The Government of India is encouraging cashless payments which can be done through internet banking, mobile wallets, debit cards and credit cards.
Here are few steps were taken by government to promote digital payment:
1)The RBI and the Banks have been advised to make the required cash available to the District Cooperative Credit Banks (DCCBs).
2)The central bank has already decided to provide additional 60 days time for repayment of dues. The time frame is applicable on personal and crop loans, housing, and agricultural loans, availed from banks, NBFCs, DCCBs, or NBFCs.
3) To encourage the use of debit card, the banks have decided to waive transaction charges (MDR) up to December 31, 2016. The National Payments Council of India (NPCI) has already waived switching charges for RuPay Cards.
4) Public Sector Banks and some of the private sector Banks have decided to waive the MDR charges till 31.12.2016. Other private sector Banks are expected to follow the same.
5) To facilitate the use of e-wallets, RBI has decided to increase the monthly transaction limit to Rs 20,000 from Rs 10,000.
6) To encourage online ticket booking, the Indian Railways have decided not to levy service charges on purchase of reserved E-tickets up to December 31, 2016.
7) TRAI has decided to reduce the USSD charges to Rs 0.50 from the current Rs 1.50 per session for transactions relating to banking and payments.