The government and the Reserve Bank are taking measures to bring down the digital transaction cost with an aim to move towards a less-cash economy, Finance Minister Arun Jaitley said today.

Chairing the 5th Meeting of the Consultative Committee attached to his ministry, Jaitley said digital transactions are a parallel mechanism, not a substitute, for cash transactions and "cashless economy is actually a less cash economy as no economy can be fully cashless". He told the participating Members of Parliament (MPs) that the government is trying to encourage digitization as much as possible because an excessive cash economy has its own social and economic costs and consequences, reports PTI.

Less cash, he said, can be gradually substituted to the possible extent through digital transactions. According to PTI, Jaitley said the Centre has announced various incentives to attract people to shift to the digital mode of payment and the response is quite positive so far in this regard.

Jaitley further said the government and the RBI have taken various steps to bring down the cost of digital transactions and specifically mentioned about MDR charges.

The Finance Minister added that 55 per cent petrol pumps in the country are accepting payment through digital means and with the government providing incentives, more people are switching to this mode.

As part of efforts to promote e-payments, the Finance Minister said the government is providing various incentives for digital transactions including on debit card use.