Cheaper fuel, discounted train tickets: Key benefits by Modi government if you pay online or use e-wallets

At a time when Modi government’s key agenda is building a cashless economy, especially after demonetisation, Finance minister Arun Jaitley's announcements outlining a roadmap for cashless payments came as a relief to many Indians.

Here are the highlights of his speech:

- Insurance bought online from customer portal of public sector companies will get 8% discount for life & 10% for general insurance.
- Around 4.5 crore consumers purchase fuel every day. For those using cards and e-wallets, Petrol and Diesel purchases will now attract a 0.75% discount.
- The government will provide 2 POS or Point of Sale machines for free to each village that has a population of over 8,000. Around 75 crore people will get access to these machines.
- Monthly and seasonal tickets for suburban train passengers who pay digitally for their tickets will get a 0.5% discount. This discount will be applicable from January 1, 2017.
-Railways to also give 5% discount on accommodation, catering and retiring room on payment by digital mode.
- Railways passengers who purchase tickets online will be entitled to an insurance coverage of Rs 10 Lakhs for free.
-Digital transactions up to Rs 2,000 will be exempted from service tax
- Highway toll will see 10% discount on digital payments
- NABARD will give Rupay card to people who have Kisan Credit Card

The government clearly is encouraging alternate forms of payment. It aims to push and implement the use of credit cards, debit cards, mobile wallets, and online banking.

All decisions were declared to be implemented with immediate effect.