E-wallet firms welcome payment panel’s proposals

These called for taxing cash transactions above Rs 50,000, abolishing banks’ interest on credit card transactions, give tax refund to consumers on digital payments and extending Rs 1,000 subsidy on smart phones to promote a less-cash, digital economy. “These recommendations further strengthen our belief in the government’s commitment to promote digital payments and enable a cashless economy in India. Tax benefits on digital transactions will ensure nationwide adoption and make digital payments accessible to the masses. Further, these recommendations will create a demand for cashless payments,” said Bipin Preet Singh, Founder and CEO, MobiKwik. 

“Post demonetisation, the adoption and accessibility of digital payments has grown many fold and such steps shall ensure that our dependency on cash reduces even further and we move swiftly towards a more transparent and prosperous economy,” he added. The panel headed by Andhra Pradesh Chief Minister N. Chandrababu Naidu, in its interim report on promoting “Digital Payments”, said that to curb use of cash for large transactions, the government could “consider a levy of banking cash transaction tax on transactions of Rs 50,000 and above” and “a cap on maximum allowable limit of cash in all types of large size transactions”. “We really welcome the interim report released by the CM’s panel and are happy to know that most of the recommendations are in line with that of the Watal committee which we submitted last month,” said Naveen Surya - MD, ItzCash and Chairman, Payments Council of India. 

“As suggested by the report, ‘Interoperability’ and access to a unified payment infrastructure is a major issue, most players are asking for. Today one wallet cannot transfer money to another wallet and each has cash limitations. If one needs to make many payments, then it is advisable to download many wallet apps. “The idea of the report is to create a unified interoperable situation, where users can use one payment mechanism for different types of payments like IMPS, USSD, debit/credit cards, e-wallets and can also do away with multiple passwords and apps,” he added. 

Surya also said the thrust should be on competition and innovation and interoperability between various payment systems.