wordpress blog stats
Connect with us

Hi, what are you looking for?

Budget 2017-18: How will digital payments be affected

The setting up of a payments regulatory board within the Reserve Bank of India (RBI) and amending the Payments and Settlements Act, 2007 is the most significant development for digital payments in the budget presented by finance minister Arun Jaitley.

“There will be an amendment in law, and a new payments regulatory board will be constituted, replacing the existing one,” Jaitley said in his speech. This was in line with the recommendations of the Watal Committee report on digital payments which was presented in December.

However, the need of the hour, with the influx of digital payments being made through various means such as wallets, cards, UPI, NEFT and IMPS is to develop a grievance handling system. During the budget, the finance minister had set a target of  2,500 crore cashless transactions in 2017-18 primarily through the Unified Payments Interface (UPI) and Aadhaar Pay. As MediaNama had reported, many transactions on the UPI are failing and customers are not able to get refunds and around the same time, transactions worth Rs 990 crore were happening on the UPI. 

– BHIM app: The finance minister also seems to have taken a leaf out of Paytm’s and other payment companies playbook said that the BHIM app will get two new schemes for individuals and merchants. Individual users, they will be eligible for a bonus while merchants will be able to give cash backs for using the app. Arun Jaitley also said that BHIM app has 1.25 crore users until now.

– Aadhaar Pay: Jaitley also made a mention of the Aadhaar Pay which will allow any person with his Aadhaar number linked to Bank account, can make and/ or receive payment, with a thumb impression alone.

Advertisement. Scroll to continue reading.

– POS and micro ATMs: The finance minister reiterated the goal of setting up 10 lakh POS terminals in the country which was mentioned during the demonetization period. At the same time, he added that 20 lakh Micro-ATMs which can process Aadhaar payments would be set up in the country.  The minister also relaxed custom and excise duty for firms engaged in the manufacturing of digital devices such as micro ATMS, POS/ mPOS. MediaNama has been mentioning India has one of the lowest POS terminal penetration. There are  700 million debit cards and 25.94 million credit cards and there are only 14,43,899 POS terminals in the country.

Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



India and US come to terms on how to deal with the equalisation levy in light of the impending Global Tax Deal.


Find out how people’s health data is understood to have value and who can benefit from that value.


The US and other countries' retreat from a laissez-faire approach to regulating markets presents India with a rare opportunity.


When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.


The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ