Govt mulling on cash disincentives; quote PAN details on Rs 30,000 payment

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New Delhi: In order to push digital, Modi government may soon announce a series of disincentives on use of cash in the upcoming Budget, reported Economic Times.

As per the report, the government is mulling over reducing the threshold for quoting PAN card for cash transactions.

The current threshold of Rs 50,000 for cash transaction could be brought down to Rs 30,000 so as to attract more digital transactions within formal economy. Threshold for quoting PAN Card details for merchant transactions could also be reduced from current 2 lakh added the source.

Despite these changes in threshold, an additional cash-handling charge is also being mulled over for cash payments above a certain limit. “The cash handling charge so collected should be exclusively used to fund new infrastructure for accpeting digital payments (like POS devices),” a source said.

Those who do not have PAN, could be asked to use Aadhar card mandatorily.

The steps would be taken to promote digital payments and curb cash transactions.

Earlier, reports claimed that soon number of free ATM withdrawals would be reduced to disincentivise the use of cash.

Wefornews Bureau

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