CAIT urges govt to launch nationwide campaign for cashless economy

New Delhi, June 27 (KNN) In order to bring more transparency in transactions, the Confederation of All India Traders (CAIT) has urged the Union Finance Minister Arun Jaitley to launch a nationwide campaign for cashless economy same on the pattern of campaign undertaken for PM Jan Dhan Yojna for making awareness among the people about importance and advantages of cashless payment system.

In a statement, CAIT said that the need of transformation of economy from cash to cash less society is for bringing more transparency in transactions, eradication of shadow economy thus enlarging economy and national GDP.

Amitabh Kant, CEO, Niti Aayog and Ramesh Abhishek, Secretary, DIPP, Ministry of Commerce while addressing a Trader's meet of CAIT held recently a have laid much stress on adoption of modern technology by small businesses in their existing business format.

The CAIT has been at the fore front of a less cash vision by partnering with MasterCard since last more than one and a half year to educate merchants and traders about digital payments and e commerce. So far it has trained about 50 thousand traders all over the Country by holding regular workshops, seminars and conferences, it said.

B.C.Bhartia, National President & Praveen Khandelwal, Secretary General of CAIT, suggested that in order to ensure early adoption of cashless society, the Government should bring incentivisation policy which may include tax benefits, discounts in property tax, telephone and electricity bills and in other government revenue. There are about 12 lakh POS terminals in the Country. To augment usage of POS terminals at its availability at reasonable prices, the Government should facilitate manufacturing of Point of Sale (POS) terminals in the Country itself under Make in India program. Currently, the POS machines are imported. The CAIT has also called for abolition of import duty on POS terminals. There also a need for easier KYC norms for small businesses along with a revised credit rating mechanism.

The Government should launch a massive national campaign for making awareness across the Country in association with Trade Associations, Resident Welfare Associations, Consumer Organisations, Banks, Financial Institutions, Chartered Accountants and other sections of the public, CAIT added.

In line with PMs cashless vision, the CAIT will soon release a White Paper and a Roadmap on Less Cash economy in India and will also hold a national conference of stakeholders to take forward the cashless vision of Prime Minister.

In India 96% retail transactions are conducted in cash.Only 3.6% of households in India make cashless transactions. There are about 60 crore Debit Cards and 2 crore Credit Cards in the Country. Almost 95% of Debit Cards are used at ATMs to withdraw cash. The CAIT has suggested to levy 0.5% service charge on each withdrawl from ATMs to discourage cash withdrawals. (KNN Bureau)