Union government post-demonetisation of currency on 08.11.2016 to encourage use of cashless transactions had started giving several discounts for promoting use of credit and debit cards which also included 0.75-percent discount on purchase of petrol and diesel through credit or debit cards. Due to inadequate publicity, it is not clear which discounts are still prevailing which also included on on-line payment of insurance premiums.
With all such discounts having since lost relevance after normalisation of currency-position, Union government should not burden exchequer with subsidy-loss through such discounts any more. Instead steps should be taken to ensure banking to be made least expensive including in respect of credit and debit cards. Concept of minimum-balance-charge for bank-accounts should be altogether abolished with banks already earning a lot on providing a very small interest-rate on bank-balances in savings-accounts and no interest on credits in current-accounts. Likewise charges for issue and maintain debit cards should be abolished.
However consolidated steps can be taken to minimise currency-circulation which may also include a monthly cash-withdrawal limit from banks of say rupees ninety six thousand for an individual, which may be gradually reduced to rupees fifty thousand per month.
MADHU AGRAWAL