Central panel suggests charges for cash usage

The committee has suggested a 30-90 days� timeline for implementing measures that could help cut India�s currency usage in three years

Central panel suggests charges for cash usage

A committee headed by former finance secretary Ratan Watal has suggested ways to encourage digital payment to the Central government.

If the Centre accepts the recommendations, chances are there that charges would be levied for cash usage.

The committee has suggested a 30-90 days’ timeline for implementing the measures that could help cut India’s currency usage in three years.

The committee has also recommended an independent mechanism within the overall central banking structure, and amendments in the payments and settlement laws and disincentive for cash usage among host of other measures to help shift towards a less cash society.

Earlier, in the final report submitted by the committee, it called for the need of safeguarding security of digital transactions and suggested inter-operability of payments system between banks and non-banks, upgrade of digital payment infrastructure and institutions.