In keeping with the government’s move to boost digital transactions, President Pranab Mukherjee has given his assent to new rules relating to promotion of digital transactions and under which it will be looked after by Ministry of Electronics and Information Technology (Meity).
The presidential clearance was to change Allocation of Business Rules, 1961, to delegate work of “Promotion of Digital Transactions including Digital Payments” to Meity.
The Ministry is tasked with promotion of 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.
Since demonetisation of old Rs 500 and Rs 1000 notes last year,the central government is emphasising on digital payment and taking many steps in this regard.
The Union Cabinet at a meeting chaired by Prime Minister Narendra Modi in February last year had given its approval for introduction of steps for promotion of payments through cards and digital means. The move aims at reducing cash transactions.
“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,” as per an official press release issued then.
The Centre had in December 2016 decided on a package of incentives and measures for promotion of digital and cashless economy in the country.