Government think tank Niti Aayog has begun the exercisie by reaching out to states to collate data, which will help it compile the first of its kind index. States will be ranked on the basis of this index.
An official involved in the exercise told ET that the move will give a boost to the government’s digital payments drive and help states improve their ease of doing business.Read more ↓
The government has been promoting digital transactions since November 8 when it announced demonetisation of old Rs 500 and Rs 1,000 notes. The official, who spoke on the condition of anonymity, said the Prime Minister’s Office has supported the idea. Prime Minister Narendra Modi is the chairperson of Niti Aayog.
“The first ranking of states on the basis of digital transactions will be out in few months,” the official said.
The digital transaction index is likely to be based on three parameters — total transactions in a state, proportion of cash and digital transactions, and the extent of penetration and usage of different modes of digital payments.
The government has identified five digital payment systems with the aim to make them accessible and user-friendly.
These include unified payments interface (UPI), digital or e-wallets, prepaid debit or credit cards that can be used at ATMs and point of sales (PoS) machines, Aadhaar-enabled payment systems (AEPS), and unstructured supplementary service data (USSD).
Besides, it has announced cash awards of up to `1 crore and `50 lakh for consumers and merchants who use digital modes of payments, an attempt to bring more and more people on to the digital platform and thus making transactions more transparent.