From BHIM App to Aadhar Pay, #5 Add-ons in Budget 2017 to Boost Digital Economy
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We are aware we need to do more for our people, our agenda is to transform, energize and clean India, that is 'tech India', Finance Minister Arun Jaitley said in his speech as he unveiled annual budget 2017-18 on Wednesday.
Jaitley said the focus of his Budget for 2017-18 will be on 10 important sectors, including farmers, public service, youth, digital economy and tax administration to transform, energize and clean India.The Union budget 2017 holds a significant importance for the digital economy, especially after the demonetisation drive by Prime Minister Narendra Modi.
The Government announced important steps to give a major boost to digital economy.
Strengthening Digital Payment: The Government is targeting Rs 2,500 crore digital transactions across platforms like UPI, card machines and online payments in FY18. It will also take steps to promote digital payments at petrol pumps, hospitals, municipalities, block offices, road transport offices and other institutions.
New Schemes to Boost BHIM App Transaction: Jaitley said nearly 125 lakh people have adopted BHIM (Bharat Interface for Money) app so far. The Government will launch two new schemes - a referral bonus and cash back scheme for merchants as well as individuals, to promote the use of BHIM App.
Govt. Goes Big On Aadhaar-based Payment: The Government pushes the Aadhar enabled payment system - AadharPay, especially for those without net banking, e-wallets, and debit cards. Banks will introduce additional 10 lakh Point-of-Sale terminals by Mar'17 and 20 lakh Aadhaar PoS by Sep’2017. Last week, the government had enabled the integration of Aadhaar-support with BHIM App. BHIM app users can now enter their 12-digit Aadhaar number to make transactions.
A Payment Regulatory Board For Fintech Sector: New payment regulatory board will be created under Reserve Bank of India, to regulate electronic payments, replacing BPSS (Board for Regulation and Supervision of Payment and Settlement Systems). Also, the new regulatory board will act as a regulatory board for digital payment companies.
No Cash Transactions Above Rs 3 lakh Allowed: The Government recommended a total ban on cash transactions of Rs 3 lakh and above from April 1. This move was based on the suggestion by Special Investigation Team (SIT) on black money.