Lok Sabha Question No. 433 (UNSTARRED), answered on 2017-02-03
Subject: e-Payments
Ministry: FINANCE
Asked by: CHANDU LAL SAHU

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA

## UNSTARRED QUESTION 433 TO BE ANSWERED ON 3rd FEBRUARY, 2017 (FRIDAYJMAGHA 14, 1938 (SAKA)

## e-Payments

## 433. SHRI CHANDU LAL SAHU:

Will the Minister of FINANCE be pleased to state:

- (a) whether there has been increase in e-payment; during last three years, if the details thereof; SO,
- (b) the steps taken by the Government to promote cashless economy;
- (c) whether an unprecedent   increase in the  e-payment   process has been recorded following the decision of demonetization by the Government; and
- (d) if the details thereof? SO,

The

## Answer Minister of State in the Ministry of Finance

## (SHRI  SANTOSH KUMAR GANGWAR)

- (a) Yes: Details are at Annex 1\_
- (b) Information is at Annex 2
- (c) to (d) Yes: Details are at Annex 3

*****

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## steps taken to promote cashless economy Key

- 1 National Bank for Agriculture and Rural Development (NABARD) has   approved a scheme for giving 0.5% incentive on payments made through the Aadhaar Enabled
- Payment System (AEPS) to merchants:
- 2 In respect of debit card transactions on PoS devices, between 1.1.2017 and 31.3.2017 , Merchant Discount Rate (MDR) has been capped at 0.25% for transaction value upto Rs. 1,000, and for debit card transactions value between Rs. 1,000 and Rs. 2,000, MDR has been capped at 0.5%.
- 3 Reserve Bank of India has decided that till 31.3.2017 , banks and prepaid payment instrument issuers shall not levy any charges on customers for transactions up to Rs: 1,000 settled on Immediate Payment   Service (IMPS), Unstructured   Supplementary Service Data (USSD) and Unified Payments Interface (UPI): Further; Government has issued a direction in public interest to all public sector banks not to charge fees for transactions settled on IMPS and UPI in excess of rates charged for National Electronic Funds Transfer (NEFT) for transactions above Rs. 1,000, with service tax being charged at actual; for USSD transactions till 31.3.2017 above Rs 1,000, a further 50 paise discount is provided:
- 4 NPCI has waived switching fees for RuPay Card transactions (both for Pos and ecommerce) , IMPS, UPI; National Unified USSD Platform (NUUP) and AEPS, with effect from 1.1.2017 till 31.3.2017 .
- 5 Credit card, debit card, charge card and other payment card services by banks have
- been exempted from payment of service tax for transactions of up to Rs. 2,000.
- 6\_
- Government has introduced Lucky Grahak Yojana for customers and Digi Dhan Yojana for merchants to promote means of cashless transactions\_
- 7 In terms of Office of Controller General of Accounts Office Memorandum dated 14.12.2016, the applicable Merchant Discount Rate (MDR) charges on debit cards for payment up to Rs\_ 1 lakh shall be absorbed by the Government: In terms of Department of Public Enterprises letter dated 9.12.2016, all Central Public Sector Enterprises (CPSEs) are required to ensure that transaction fees, MDR charges associated with payment through digital means shall not be passed on to the consumers and all such expenses shall be borne by CPSEs\_

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