Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,895.4523.35
Stock Analysis, IPO, Mutual Funds, Bonds & More

No charges on digital payments made to large biz establishments from Nov 1

FM Nirmala Sitharaman had said business establishments with annual turnover of more than 50 crore should offer low cost digital modes of payment to their customers and the RBI and banks should absorb cost of transactions.

PTI|
Oct 18, 2019, 09.28 PM IST
0Comments
Reuters
RBI-Reuters
The new provisions "shall come into force with effect from November 1, 2019," CBDT said in a circular.
The government on Friday said banks or system providers will not impose charges or Merchant Discount Rate on customers as well as merchants on digital payments made to establishments having turnover in excess of Rs 50 crore from November 1.

In her Budget speech, Finance Minister Nirmala Sitharaman had said business establishments with annual turnover of more than 50 crore should offer low cost digital modes of payment to their customers and the RBI and banks should absorb cost of transactions.

Following the announcement, amendments have been made in the income tax act as well as in the Payment and Settlement Systems Act 2007.

The new provisions "shall come into force with effect from November 1, 2019," the Central Board of Direct Taxes (CBDT) said in a circular.

The CBDT has also invited applications from banks and payment system providers who are willing that their payment systems may be used for the purpose as the government plans to prescribe certain electronic modes of payment.

Also Read

PM pushes for digital payment with 'yes to digital payment, no to cash' motto

8 digital payment-related scams and how you can avoid them

Younger consumers prefer digital payments this festive season: ACI study

Younger consumers prefer digital payments this festive season: ACI study

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service