New committee to swipe towards cashless society

From past couple of month, the GOI and RBI have been working on how to reduce cash transactions in the economy. For this, they have also formed a committee of 7 members which is chaired by a ministry official, Neeraj Kumar Gupta. The committee is working on to maximize the acceptance of card payments. This will require more of point-of-sales (PoS) machines. As per RBI data at end-March shows 24.5 million credit cards and 661.8 million debit cards in the country, compared to 1.3 million PoS terminals.

Last year also a committee was formed on the same issue. So the new panel will also work on the suggestions of the past panel which include reducing the interchange fee charged on credit cards and bringing these at par with debit cards. Currently, 1.98 % in the case of credit card spending and 0.5-1 % in debit card spending of the total amount is interchange fee by the bank and the card players. This amount is paid by the merchant and is split between the bank that issued the card, the lender whose PoS machine is being used and the payment system RuPay, Visa or MasterCard.
The committee is also working at ways in which card payers needn’t pay a surcharge for fuel, utility bills and railway bookings, a move approved earlier by the government.


So let’s discuss some questions related to this post :
1. A new committee for swipes toward cashless society has been formed by which organization ?
2. The committee for swipes toward cashless society is chaired by whom ?






Courtesy : RBI.org



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