Budget 2019-20: Nirmala Sitharaman's maiden budget offered proposals including forcing companies with over Rs 50 crore turnover to offer digital modes of payments without levying merchant discount rates and common mobility card for quick payments
Union Budget 2019 India: The payments industry has welcomed the budget proposals saying these announced measures will help create a robust payments infrastructure in the country. However, the industry leaders have underlined the need for sufficient Internet penetration and data reach to achieve the aspirations.
Nirmala Sitharaman’s maiden budget offered proposals including forcing companies with over Rs 50 crore turnover to offer digital modes of payments without levying merchant discount rates and common mobility card for quick payments. “The budget facilitates the transformation of the economy from cash-driven one to a less-cash economy,” the National Payments Corporation managing director and chief executive Dilip RPT Dilip Asbe said in a statement.
Ramaswamy Venkatachalam, managing director for banking and payments at FIS, however, said a continued improvement in the telecom infrastructure and access to mobile and Internet banking will be “crucial” for the expansion of digital payment alternatives which are being evinced. Software industry lobby Nasscom said the digital infrastructure will witness several upgrades with cashless payments and income tax automation.
Bhavin Turakhia, the co-founder and chief executive of Zeta also welcomed all the moves like waiving-off MDR. Chandra Shekhar Ghosh, managing director of private sector lender Bandhan Bank said the moves to discourage cash payments will help expand the digital payment ecosystem bringing in more consumer convenience and accountability.
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