Union Finance Ministry constitutes High-level Committee to suggest steps to promote card payments

Aug 29, 2016 13:29 IST

The Union Finance Ministry on 26 August 2016 constituted a high-level committee to suggest steps to promote card payments through incentives like tax rebates and cash back schemes. The committee was constituted with an aim to discourage cash transactions.

The 11-member committee will be headed by former Finance Secretary Ratan P Watal. The committee will have representatives from the Reserve bank of India (RBI), Unique Identification Authority of India (UIDAI), the tax department and various industry bodies in the payments space.

Terms of reference of the committee
• It will recommend various measures to incentivise transactions through cards and digital means, e.g., through tax rebates/incentives, introduction of cash back/lottery.
• It will review the payments system in the country and recommend measures for encouraging digital payments.
• It will study feasibility of creating Payments History of all digital payments and ensure that consumers can leverage the data to access instant, low cost micro-credit through digital means.
• The panel will also study and recommend need for changes, if any, in the regulatory mechanism under various laws, relevant for the purpose of promotion of payments by digital modes.
• It will also study and recommend ways for leveraging Unique Identification Number or any other identity proof for authentication of digital transactions and setting up of a centralised KYC Registry.
• It will study introduction of single window system of payment gateway to accept all types of cards/digital payments of government receipts and enable settlements via NPCI or other agencies.

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