Digital or cashless economy propaganda has been doing the round since last two years or so and the endeavor is aimed to stop illicit practices and using black money for various dealings and hence better compliance and accounting.
First and foremost in the digital payments sphere can be
1. Rationalization of 18% GST on banking and other financial services: GST charges over time have been rationalized for over 250 goods and services and this time around a cut back in GST rate for banking services which currently stands at 18% and is further expected to move up the cost for customers with the levy of charges for each of the basic service which until now did not involved any cost for a customer.
2. More safety per se cyber crime: Of the majority of the population base, still a vast public doesn't still believe in going cashless on the fear of any digital threat to their hard earned money. So the system should be strengthened in a way that people do not wary going cashless fearing any financial fraud.
3. Customers as well as service providers should both be incentivized for going digital: MDR or the merchant discount rate payable by merchants is being brought down and now stands zero for Rs. 2000 transactions. So, the RBI is working to make it more feasible in the hands of both customers and service providers.
4. MicroATM charges should also be reduced to a more realistic level: Few of the new banking entities that have sprung up in just a matter of say 15 days or 1 month shall also be reduced to a level of 5%.
5. Financial inclusion to be made further widespread: The use of digital banking or cashless economy can only be rooted only if the basics of financial inclusion are understood well. So, the banking industry and other financial institutions shall do all their bit to work in the direction of financial inclusion.