With an aim to further boost digital transactions, the government has passed the responsibility of promoting digital transactions, including digital payments to the Ministry of IT and Electronics (MEITY), which was earlier assigned to the National Institution for Transforming India (NITI) Aayog. The decision was taken in view of the core competence of MEITY to promote digital means for various transactions.
It was reportedly said that NITI Aayog -- which is a think-tank -- should focus on monitoring and suggesting ways to improve various government schemes rather than getting involved with implementation. Earlier, the government had set up a committee under the chairmanship of NITI Aayog CEO Amitabh Kant to push adoption of e-transactions amid the cash crunch faced by citizens due to the note ban.
Through digital transactions, government wants to reduce cash to GDP ratio to around 8 per cent which is now hovering over 13 per cent. To create cashless economy, the IT ministry is tasked with promotion of e-governance for empowering citizens, promoting inclusive and sustainable growth of the electronics and information technology (IT). It is also responsible for encouraging the growth of IT-enabled services industries.