How Modi sarkar is using digital transactions to curb black money

It has been the endeavour of the present NDA government to tackle the black money, right from the start of its tenure.

The extent of success though debatable, the government has been working quite relentlessly to achieve this goal.

There was a recent measure to curb high value cash deposits above three lakh rupees and cash purchases above two lakh rupees to be backed by PAN Identification, to track cash transactions.

As another step forward in this regard, a slew of other measures is on the cards of the government. The finance ministry has set up a high level committee to come up with steps to promote card payments through introduction of a package of incentives including tax rebates and cash back schemes as in vogue among bankers already.

The 11-member panel headed by former finance secretary Ratan Watal is tasked to suggest measures to encourage digital payments and incentivise transactions through cards and digital mode. This is resultant upon a cabinet decision in February this year.

The panel will study the following:

1. Feasibility of creating a payment history of all card/digital payments so as to link it to a low cost, instant, micro credit to merchants and small traders who contribute to a major chunk of cash transactions in the country.

2. Make recommendations to effect changes if needed in the regulatory mechanism to mandate transactions through the digital mode.

3. Suggest ways and means to leverage Unique Identification Number or other proofs of identity to enable authorisation of digital transactions.

4. Setting up a centralised repository and registry to link all commercial and governmental transactions is a big watershed reform to be underway.

5. To help operate a single window system of payment gateway to access and accept all digital payments via National Payments Corporation of India (NPCI) or other agencies.

The above measures are also likely to enable the government to make timely payments which is a major commitment under the new monetary policy to make the inflation targeting and price control strategy to bring about the avowed results besides maintaining a healthy money control.

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