Home / Knowledge / News / Apparel/Garments / CAIT urges govt to use incentives for e-payments in retail
CAIT urges govt to use incentives for e-payments in retail
Jan '16
The Confederation of All India Traders (CAIT) has drawn attention of the Union Finance Minister Arun Jaitley towards draft of Cabinet note prepared in August,2015 for proposing various incentives for promoting electronic transactions in India both at the end of merchants and consumers. The said draft note contains several fee waivers and tax benefits for usage of digital payments.

"Since the Government is moving towards 100 per cent e-governance , it is imperative upon the Government to launch a national drive to promote more usage of electronic transactions in India and equip the merchants with electronic gadgets to avoid any mismatch at the time of implementation of the policy," said CAIT Secretary General Praveen Khandelwal in a press release.

The CAIT has already launched a national campaign for cashless economy in association with MasterCard, a global digital payment technology company.

It said that with the implementation of GST every compliance, including payment of taxes etc will be conducted through electronic system and considering the fact of very low penetration among merchants and consumers about usage of electronic payments, it is necessary that more and more people should be encouraged to adopt electronic payments for transactions and purchase of goods.

Providing incentives and tax benefits as a part of incentives will certainly encourage people to adopt electronic payments as a mode of purchase or transactions. About 95 per cent use of debit cards is done for withdrawing cash from ATMs and therefore CAIT has suggested to levy 0.5 per cent surcharge on cash withdrawal from ATMs.

CAIT National President B. C. Bhartia while citing a recent report of United States Agency for International Development (USAID) in context of payment landscape of India said that about 97 per cent retail transactions are done in cash whereas only 11 per cent consumers use debit card for payment and merely 6 per cent merchants in India accept electronic payments. A whopping 82 per cent customers are unaware about making transactions through mobile phones whereas about 79 per cent customers are unaware about online banking. About 89 per cent merchants are in favour of using debit card. The most important reasons for merchants not adopting electronic payment system includes lack of awareness among them about electronic payments.

The CAIT pointed out that the Government's draft incentive proposal in August,2015 spells out certain tax benefits and waiver of transaction costs charged by banks. While urging the Government to implement said proposals, the CAIT said that proposal to provide incentives to shopkeepers accepting payments in business transactions through plastic money will encourage traders to embrace e-payment system.

Must ReadView All

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Courtesy: Bombay Dyeing

Textiles | On 3rd Dec 2016

Bombay Dyeing to focus on retail; stops textile production

Bombay Dyeing, a Wadia group company, has decided to shift its focus...

Apparel/Garments | On 3rd Dec 2016

Q3FY17 net earnings slip 26.8% at denim retailer Guess

In the three months ended October 29, 2016, net earnings at denim...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search