Demonetisation: Use plastic to get discounts on petrol, diesel, says Arun Jaitley

Jaitley suggested 11 steps to be taken by the Central Government to switch over to cashless transactions, including the discount for cashless transactions on Thursday in a press meeting

Demonetisation: Use plastic to get discounts on petrol, diesel, says Arun Jaitley

Reacting to problems faced by the common man, after the demonetisation drive, Union Finance Minister Arun Jaitley on Thursday came up with an offer of 0.75 per cent discount to those who buy petrol and diesel using cards.

Jaitley also suggested 11 steps to be adopted  by the Central Government in coming days to switch over to cashless transactions, in a press meeting held on Thursday in New Delhi,  including the discount for cashless transactions.


Jaitley said demonetisation aims at reducing cash transactions as much as possible, adding that government is doing all possible steps to promote switching over to plastic money.

The government is actively promoting all cashless transaction by pushing forward use of credit cards, debit cards, mobile wallets and online banking, Jaitley told media.

The government is targeting around 4.5 crore customers to use cards to buy fuel every day, he revealed. In an effort to  encourage use of cards, government will offer a 0.75% discount to all using cashless transactions, he said.

All train travellers can avail a discount of 5 % on accommodation, catering and retiring room in major railway stations all over India, he added.  There will be no service tax on transactions of up to Rs. 2,000 for all transactions by card, he clarified government's incentives for cashless transactions.

From now on,all online payment of  general insurance premiums will now get a 10% discount and 8% discount for life insurance if the payment is made online, Jaitley said, adding that no transaction fee will be charged from now on by government bodies for digital transactions.

Jaitley said citizens can use Smart TAGs and RFID facilities at all toll plazas on national highways.  The government has decided to set up 2 POS (Point of Sale) machines in every village,  with a population of over 8,000 free.About 75 crore citizens will benefit from these machines,  Jaitley revealed.

Suburban train travellers can get a discount of 0.5% for digital payments. It will be implemented  from January 1, 2017, added Jaitley.

All  passenger who use online payment can also get an insurance coverage of Rs. 10 lakh, said Jaitley. On Thursday, RBI Governor Urijit Patel said, RBI has not come with demonetisation policy in haste.

He added the Central Bank has taken all measures to ensure free flow of currency across the country.