New Delhi, Aug 27 (KNN) With an objective to discourage cash transactions, the Union Finance Ministry has set up a high-level committee to suggest steps to promote card payments through incentives like tax rebates and cash back schemes.

It has set up the 11-member committee, led by former Finance Secretary Ratan P Watal, which will recommend various measures to “incentivise transactions through cards and digital means, e.g., through tax rebates/incentives, introduction of cash back/lottery,” the ministry said in a notification.

The panel, which will review the payments system in the country and recommend measures for encouraging digital payments, has been set up following a decision taken by the Cabinet in February.

The committee will also study feasibility of creating a payments history of all card/digital payments and ensure that merchants/consumers can leverage the data to access “instant, low cost micro-credit” through digital means and create necessary linkage between the payment history and credit information.

The panel will also study and recommend need for changes, if any, in the regulatory mechanism under various laws, relevant for the purpose of promotion of payments by digital modes.

Notification also said “To study and recommend ways for leveraging Unique Identification Number or any other proof of identity for authentication of card/digital transactions and setting up of a centralised KYC Registry” is another key task given to it.

The panel will study introduction of single window system of payment gateway to accept all types of cards/digital payments of government receipts and enable settlements via NPCI or other agencies.  (KNN Bureau)