NEW DELHI: With the government stepping up efforts to build a cashless economy and setting lofty targets like clocking 2,500 crore digital transactions in the current financial year, the need for a regulatory authority for digital payment systems has become more apparent, the Confederation of All India Traders (CAIT) said here on Tuesday.
The traders’ body has suggested several measures including tax benefits for both consumers and merchants to promote digital payments and urged the government to implement the recommendations of the Watal Committee report on digital payments at the earliest.
“Tax rebates for consumers for certain types of digital payments will be an important step. Also, similar benefits should be extended to merchants either in the form of sales tax,” Praveen Khandelwal, secretary-general of CAIT, told reporters here on Tuesday after releasing the report on digital payments.
The report highlights the importance of achieving universal access to infrastructure and has suggested open payment systems through a digital payments policy. It has also advocates reward schemes for merchants and consumers; faster adoption of mobile QR code-based card acceptance solutions, formation of digital payments board and an authority to monitor RuPay.
CAIT has also sought removal of the requirement for banks to report electronic transactions and make consumers fearless to go for cashless economy.
“There should be no card refusal and no surcharge should be levied on digital payments as it would act as a deterrent to promote such payments. There is a need to increase PoS terminals besides allowing non-banking financial companies to issue digital payments,” Khandelwal noted.