Budget 2017: Arun Jaitley announces steps to promote the digital economy

tech2 News StaffFeb 01, 2017 12:56:24 IST

Transforming India into a less cash economy to tackle the issue of corruption and clean up the system is one of the integral strategies of the government. At the Union Budget for 2017, Finance Minister Arun Jaitley laid out some steps that the government will be taking to boost the digital economy.

The main concerns were security, infrastructure build up and promoting the adoption of cashless methods of financial transactions.

Jaitley announced that the digital payment infrastructure would be strengthened, along with the grievance handling system. There is a plan to build up the infrastructure necessary to support cashless transactions, with a focus on rural and semi urban areas.

Post offices, fair price shops and banking correspondents will be used to promote cashless transactions. Jaitley has said that the government will possibly mandate support for digital payment methods, including the Bhim app in petrol pumps, fertiliser depots, municipalities, block offices, road transport offices, hospitals, universities, colleges and other institutions.

There is a proposal to make all government spends beyond a certain limit to be electronic. Steps are being taken to implement the suggestions by the Chief Minister's panel on Digital Payments.

A final report is expected from the panel of state chief ministers. The Payments and Settlement Act 2007 will see amendments according to recommendations in the report.

The RBI will have a brand new payment regulatory body, replacing the existing board of regulations and supervision of payments and settlements.