In an aim to move towards a less-cash economy, the government and the Reserve Bank are taking measures to bring down the digital transaction cost. Finance Minister Arun Jaitley has said that the government is trying to encourage digitisation as much as possible because an excessive cash economy has its own social and economic costs and consequences. He said the government and the RBI have taken various steps to bring down the cost of digital transactions and specifically mentioned about MDR charges.
Jaitley however, said that 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 further said that the Centre has announced various incentives to attract people to shift to digital mode of payment and the response is quite positive so far in this regard.
Elaborating further the Finance Minister said 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.
Jaitley in the Consultative Committee meeting attached to his ministry, emphasized that the government is conscious of the need of cyber security of high level to secure digital payments and assured the members of the Committee about cyber security measures being taken by the banks under RBI supervision. He said the government was trying its best to minimise common man's pain.
