In order to encourage digital payments, the Nandan Nilekani committee has suggested a host of measures, including elimination of charges, round the clock RTGS and NEFT facility and duty-free import of point-of-sales machines.
About:
Background: In January, the RBI had set up the five-member panel on deepening digital payments with a view to encouraging digitization of payments and enhance financial inclusion through digitization. The committee submitted its report last month.
Key recommendations to encourage digital payments:
Formulate an internationalization plan for Indian payment systems such as RuPay and BHIM UPI to ease remittances into India and to help Indian travellers make payments abroad.
Current import duty of 18 % on POS machines be reduced to Nil for a period of three years to facilitate adequate expansion of acquiring infrastructure in the country.
Put in place a mechanism to monitor the digital payment systems and make aggregated information based on blocks, and PIN code, available to all players on a monthly basis.
The regulator must intervene at regular intervals to fine tune interchange fee to ensure there is level playing field in the market both for issuer and acquirer.
Enhance features of ATMs merely from cash dispenser to support other banking facilities including cash Deposit, bills payment, mobile recharge etc. to act as a complete Digital facilitation point.
Don’t charge convenience fee on payments made to government agencies by customers.
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