TaxTMI 
TaxTMI 
Guidelines for the promotion of payments through cards and digital means
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....and financial inclusion. v. Reduce tax avoidance. vi. Reduce the impact of counterfeit money. 3. Scope i. Provide access to financial payment services to every citizen along with ability to conduct card/ digital transactions. ii. Digitalize Government collections by equipping each collection point with a method to accept card/ digital payments. iii. Migrate payment transactions from cash dominated to non-cash through incentivization of card/ digital transactions and disincentivization of cash based transactions. iv. Enhance acceptance infrastr....
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....ital payments for essential commodities, utility service providers, petrol pumps, gas agencies, railway tickets /IRCTC, tax department, museums, monuments etc.; (b) take appropriate steps to bear MDR cost like other merchants; and (c) build acceptance infrastructure (POS/ Mobile POS terminals) for card/ digital payments at all collection centres. ii. Ministry of Road Transport & Highways/ Ministry of Urban Development shall facilitate the use of existing open-loop systems issued by a bank for multi purpose use, including for making transit payments with a dedicated application (eg. Toll fees, metro rail and bus services, etc.). iii. Department of Financial Services/ RBI shall....
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....nd high value transactions. iii. Department of Revenue shall take steps to remove double taxation, if any, on service tax currently paid on MDR by the acquiring bank and on interchange fee by the issuing bank. iv. Wherever needed, the Departments/ Ministries shall make modifications in the Rules and Regulations that may have been issued, so that appropriate change is incorporated to allow payments/receipts by using cards/ digital means also. Cash payments by any Government Department/ Agency shall be allowed only under very specific circumstances for clearly stated reasons. v. Department of Revenue/ Department of Financial Services shall manda....
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....ications shall take appropriate steps for rationalization/ reduction of USSD Charges and the feasibility of its being charged only on successful transactions. ii. Department of Telecommunications/ Department of Financial Services/ RBI shall make a provision for a unified USSD platform which can support transactions across all payment mechanisms. iii. Department of Financial services/ RBI shall promote Mobile banking to leverage upon the huge infrastructure available at lower cost. Towards this end, steps shall be taken to address mobile banking registration and activation challenges; ease regulations and reduce entry barriers to digital wallets/ pre-paid instruments. E. Aw....
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....ffairs shall constitute one or more Committees with key industry stakeholders, RBI and concerned Government Departments to review the payment system in the country. The following issues, among other, may be addressed by the Committee: a. Need for changes, if any, in the regulatory mechanisms under the Payments and Settlement Systems (PSS) Act, 2007 and, in other legislations affecting the payment ecosystem. b. Leveraging Unique Identification Number or other proof of identity for authentication of card/ digital transactions and setting up of a Centralised KYC Registry. c. Introduction of single window system of Payment Gateway to accept all ty....