The draft electronic transaction policy constructed by the Ministry of Finance encourages cashless transactions of all parties. Besides the usual line of promoting e-transactions among government and banking sector, the policy gives compulsions to the commercial sector to adopt e-transaction arrangements.
India undergoing a transition from cash based to cashless transaction over the last few years especially due to the attempt from NPCI and the RBI.
It is estimated that cashless transaction based on cards, mobile wallets etc will be the next event that may revolutionalise the market.
The draft available for public opinion, proposes every entities including Government, Corporate, Institutions and merchant establishments to implement non cash payments.
Main focus of the policy is to enable the economy from cash based transaction system to electronic transaction system. “Migration from cash dominated to non-cash through incentivization of electronic and disincentivization of cash based transactions” comes under the scope of the draft.
The goal of the proposed policy is to provide the necessary incentives to use E-transactions to replace the use of cash – either in government transactions, or in regular commerce over a period of time through policy intervention.
The draft also mentions some of the objectives including minimization of tax avoidance and checking of counterfeit money.
The draft is prepared after consultations with various stakeholders who are actively engaged in the electronic transaction filed that includes RBI, National Payment Corporation of India (NPCI), National Institute of Bank Management , public and private sector banks, card service providers, mobile service providers, research institutions, organizations working in this area and various government departments.
The NPCI has already provided many products and services for the promotion of e-transactions.