Jaitley clarifies on demonetisation, says no economy can be fully cashless

After the demonetisation move of the Prime Minister Narendra Modi, government is on defending track and on the other hand the opposition members blaming the government everyday. The ruling party was seen today showing clarification on the issue as well as about the cashless economy.

In another clarification yet, on the government’s demonetisaiton drive, which was aimed to curb black money, the Finance Minister Arun Jaitley said that the move towards a cashless economy is actually a “less cash economy” as no economy can be fully cashless.

At the fifth meeting of the Parliamentary Consultative Committee, marking his opening remarks he said that digital transactions are a parallel mechanism and not a substitute for cash transactions as no economy can be fully cashless.

He cleared that “a cashless economy is a less cash economy.” In the statement he added, “Less cash can be gradually substituted to the possible extent through digital payments and transactions.”

According to the ministry, the Finance Minister Jaitley said that to minimize common man’s pain government is trying its best. The government last week announced a series of eleven measures designed to increase the pace of digital payments after admitting that there are visible and hidden costs in reducing cash volume in the economy.

Arun Jaitley also said, payment by card for petrol and diesel will enjoy a discount of 075 percent. Customers will get a higher discount on digital payment as, all central undertakings will ensure that the transaction fee and merchant discount rate (MDR) charges are waived on such payments.

The Suburban railway monthly and season tickets bought through digital payment will get a 0.5 per cent discount, effective from January 1, 2017, beginning with the Mumbai suburban railway network.

Jaitley also announced that online payment for public sector insurance companies (life insurance and general insurance) will get 10 per cent discount for general insurance and 8 per cent discount for life insurance for new policies sold.

--with agency inputs