President Pranab Mukherjee has given approval to change government of India, Allocation of Business Rules, 1961, to delegate work of ‘Promotion of Digital Transactions including Digital Payments’ to the Ministry of Electronics and Information Technology (MeitY). As per the new rules, IT Ministry will oversee the works relating to promote digital transactions. The Ministry will promote e-governance for empowering citizens, promoting inclusive and sustainable growth of the electronics, information technology and information technology-enabled services industries, enhancing efficiency through digital services and ensuring a secure cyber space.
Especially after demonetization old Rs 500 and 100 notes, the central government is stressing upon digital payment and taking various steps in this regard. In February last year, the Union Cabinet headed by Prime Minister Narendra Modi had given nod for introduction of steps for promotion of payments through cards and digital means with an aims to reducing cash transactions. Besides, the Centre had in December 2016 decided on a package of incentives and measures for promotion of digital and cashless economy in the country.
Meanwhile, promotion of payments through cards and digital means will be instrumental in reducing tax avoidance, migration of government payments and collections to cashless mode, discourage transactions in cash by providing access to financial payment services to the citizens to conduct transactions through card or digital means and shifting payment ecosystem from cash dominated to non-cash/less cash payments.