Pay for transaction with digital means and avail heavy discounts  


Many steps are taken by PM Modi in order to push the economy towards cashless. In that order, to promote online transactions the Government of India has announced lots of incentives to encourage digital transactions. Here is the list of such incentives & measures:


  • The Central Government Petroleum PSUs will offer a discount 0.75% of the sale price to consumers on purchase of petrol/diesel if payment is made through digital means.
  • To expand digital payment infrastructure in rural areas, the Central Government through NABARD will help to extend the financial support to those banks who are eligible for deployment of 2 POS devices each in 1 Lakh villages with population of less than 10,000.  These POS machines are intended to be deployed at primary cooperative societies/milk societies/agricultural input dealers to facilitate agricultural related transactions through digital means.

digital payments

  • To enable the holders of Kisan Credit cards to make digital transactions at POS machines/Micro ATMs/ATMs, The Central Government through NABARD will also provide support to Rural Regional Banks and Cooperative Banks to issue “Rupay Kisan Cards” to 4.32 crore Kisan Credit Card holders.
  • Railway through its sub urban railway network shall provide incentive by way of discount up to 0.5% to customers for monthly or seasonal tickets from January 1, 2017, if payment is made through digital means.
  • All railway passengers buying online ticket shall be given free accidental insurance cover of up to Rs. 10 lakh.
  • For paid services e.g. catering, accommodation, retiring rooms etc. being offered by railways through its affiliated entities/corporations to the passengers, it will provide a discount of 5% for payment of these services through digital means.
  • Public sector insurance companies will provide incentive, by way of discount or credit, up to 10% of the premium in general insurance policies and 8% in new life policies of Life Insurance Corporation sold through the customer portals, in case payment is made through digital means.
  • The Central Government Departments and Central Public Sector Undertakings will ensure that transactions fee/MDR charges associated with payment through digital means shall not be passed on to the consumers and all such expenses shall be borne by the Central Government. State Governments and its organizations are being advised to do the same.
  • Public sector banks are advised that merchant should not be required to pay more than Rs. 100 per month as monthly rental for PoS terminals/Micro ATMs/mobile POS from the merchants to bring small merchant on board the digital payment eco system.
  • No service tax will be charged on digital transaction charges/MDR for transactions up to Rs.2000 per transaction.
  • In the year 2016-17, for the payment of toll at Toll Plazas on National Highways using RFID card/Fast Tags, a discount of 10% will be available to users.


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