Economy

Cheaper Fuel, Insurance and Railway Tickets on Digital Transactions, Says Arun Jaitley

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Finance minister Arun Jaitley. Credit: PTI

In a bid to promote a less-cash economy, the government today announced discounts on an array of services from petrol to insurance and railway tickets that are bought through the digital mode and even waived service tax on card transactions of up to Rs 2,000.

A discount of 0.75% will be offered on purchase of petrol and diesel through either credit or debit cards, e-wallets and mobile wallets.

Similarly, 10% and 8% discount will be offered in case of general and life insurance for buying a new policy or paying premium online via the PSU websites.Announcing 11 decisions to promote digital transactions, Finance Minister Arun Jaitley said that monthly and seasonal suburban railway tickets purchased through digital mode will get 0.5

Announcing 11 changes to promote digital transactions, Jaitley said that the monthly and seasonal suburban railway tickets purchased through digital mode will get 0.5% discount from January 1 onwards.

Online booking of railway tickets will get Rs 10 lakh accident insurance and those using digital mode to pay for railway catering, accommodation or a retiring room will be entitled to a 5% discount.

Jaitley said that public dealings with government departments and PSUs through digital mode will be free of transaction fee and MDR charges.

Also, credit and debit card transactions up to Rs 2,000 will be exempt from service tax.

The minister further said that a 10% discount will be available on the use of digital mode for paying for RFID or fast-tags for highway toll.

“We were using an excessive amount of cash and very, very limited amount of digital transactions till November 8,” he said, adding there is a cost of transacting in cash which has to be borne by the economy.