After ban on notes, incentives for card payments coming soon
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The abrupt ban on Rs 500 and Rs 1000 notes may have inconvenienced thousands, but the government is likely to follow it up with plans to support electronic transactions, including possible tax benefits for payments made through plastic money. A government-appointed panel, set up in August, has been tasked to suggest ways such as tax rebates and cash back to incentivise card and digital transactions. It is collating the comments that it had invited from stakeholders till October 10. Some of these measures are likely to be announced in the budget for 2017-18 that will be presented early-February.
The government is also examining the feasibility to create a history for all card and digital payments. Plans are also on to use the Aadhar data base for authenticating card/digital transactions and set up a centralised Know Your Customer (KYC) registry. This is aimed at giving consumers instant, low-cost micro-credit by leveraging their credit history. This will create necessary linkages between payments transaction history and credit information.
The abrupt ban on Rs 500 and Rs 1000 notes may have inconvenienced thousands, but the government is likely to follow it up with plans to support electronic transactions, including possible tax benefits for payments made through plastic money. A government-appointed panel, set up in August, has been tasked to suggest ways such as tax rebates and cash back to incentivise card and digital transactions. It is collating the comments that it had invited from stakeholders till October 10. Some of these measures are likely to be announced in the budget for 2017-18 that will be presented early-February. 
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