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In a bid to keep the momentum gained for <keyword id="6369124" type="UNKNOWN" weightage="100" keywordseo="cashless-economy">cashless economy</keyword> due to <a href="http://www.businessinsider.in/searchresult.cms?query=demonetisation&amp;sortorder=effectivedate">demonetisation</a>, the government might announce big disincentives in the upcoming Budget for usage of cash. 
 
Reportedly, the <a href="http://www.businessinsider.in/searchresult.cms?query=upcoming+budget&amp;sortorder=effectivedate">upcoming budget</a> could come up with a series of such big disincentives. The government may reduce threshold for quoting <keyword id="74488" type="ORGANIZATION" weightage="100" keywordseo="PAN-card">PAN card</keyword> for <keyword id="1173498" type="UNKNOWN" weightage="100" keywordseo="cash-transactions">cash transactions</keyword>, say sources. 
 
The limit, which at present is is Rs 50,000 now, may be brought down to Rs 30,000 to bring more transactions within formal economy. As per the sources, the threshold for quoting <a href="http://www.businessinsider.in/searchresult.cms?query=PAN+Card&amp;sortorder=effectivedate">PAN Card</a> details for merchant transactions can also be reduced. 
 
This comes as an move by the government to tighten the noose around people who deal in large cash transactions. 
 
In fact, the threshold for quoting PAN Card details for merchant transactions could also be brought down from current Rs 2 lakh. With Aadhaar now having the government's legal backing, the usage for Aadhar card may also be made mandatory as an alternative for people not having PAN card. 
 
In addition to these steps, the government may also announce cash-handling charges for cash payments above a certain limit. 
 
Reportedly, a levy could be in the works for cash transactions over Rs 1 lakh. 
 
"The scale of the implicit cost of transacting in cash is not fully understood. We are of the opinion that licencing authorities including government agencies should levy a cash handling charge for payments in cash above a certain threshold. The cash handling charge so collected should be exclusively used to fund new infrastructure for accpeting digital payments (like POS devices)," a source told ET. . 
 The move is aimed at moving from a less-cash to a cashless society post the <keyword id="3315394" type="UNKNOWN" weightage="100" keywordseo="demonetisation">demonetisation</keyword> drive that was brought into effect by PM Modi on November 8. 
 
These measures will help the government stay on track towards a less-cash economy as there are concerns that easing of cash-withdrawal limits at banks and ATMs might take the economy back to pre-demonetisation prevalence of cash.

You may need to show PAN card for small transactions too. Here are the details

In a bid to promote <a href="http://www.businessinsider.in/searchresult.cms?query=cashless+economy&amp;sortorder=effectivedate">cashless economy</a>, the Indian government is now considering a 'cash tax'. If the proposal is cleared, it may figure in the February 1 Budget. 
 
Currently, the government is looking at the pros and cons of the proposal, which could be a tweaked form of the earlier banking cash transaction tax under the <a href="http://www.businessinsider.in/searchresult.cms?query=United+Progressive+Alliance+government&amp;sortorder=effectivedate">United Progressive Alliance government</a>, under which tax will be levied on cash withdrawals above a certain ceiling from bank accounts. 
 
"A number of steps are under discussion," a government official familiar with deliberations on this matter told ET. 
 
The new tax is being looked after so as to to shrink the scope of cash economy and encourage digital transactions. The government has taken a series of measures since <a href="http://www.businessinsider.in/searchresult.cms?query=demonetisation&amp;sortorder=effectivedate">demonetisation</a> in November last year to incentivise <a href="http://www.businessinsider.in/searchresult.cms?query=digital+transactions&amp;sortorder=effectivedate">digital transactions</a>. 
 
The final call will be taken "at the highest political level", one official told ET. 
 
"The idea is under consideration and there is good chance it could be announced in the budget," another official told ET. 
 
Digital payments transactions in December last year were 43% higher than in November last year and totaled 958 million, according to central bank data. 
 Government strategists on post <keyword id="3315394" type="UNKNOWN" weightage="20" keywordseo="demonetisation">demonetisation</keyword> policies have been emphasising that saving on costs of currency operations is an economic plus, apart from the transparency benefits of digital transactions.

Get ready for ‘cash tax’. Here’s what it is

<keyword id="6354814" type="UNKNOWN" weightage="20" keywordseo="prime-minister-Narendra-Modi">Prime Minister Narendra Modi</keyword>’s aggressive push for cashless society is showing some results post <keyword id="3315394" type="UNKNOWN" weightage="20" keywordseo="demonetisation">demonetisation</keyword> as digital transactions have gone up by 25% since demonetisation announcement. 
 Not only in organised retail, <keyword id="6358577" type="UNKNOWN" weightage="20" keywordseo="Digital-Payments">digital payments</keyword> saw an increase from roadside merchants as well, who are shifting to digital payments. 
 
"From month on month, now we are checking weekly growth data which is showing a jump of around 5 per cent per week, which is a very healthy number. The average value of each transaction which had slipped to Rs 2,000 from Rs 2,700 before November 8 has now stabilised at that level," Lokvir Kapoor, chief executive officer at Pine Labs, which facilitates installation of point of sale (PoS) terminals at merchant outlets, told ET. 
 
Since note ban, Pine Labs has been processing around 1.1-1.2 million transactions on an average per day. Before demonetisation, the figure was nearly 5 lakh on an average weekday. 
 
"We did 2 million transactions last Sunday; this Sunday being Christmas, we saw 2.2 million transactions on our network which is a healthy 10 per cent jump," Kapoor told ET. 
 
"We are mostly prevalent in smaller cities like Jaipur and Chandigarh and are operating 10,500 PoS terminals presently. Now, our call centre is flooded with queries from merchants who wish to accept digital payments; we received an order of 3,000 terminals over the past one month," Jitendra Gupta, managing director, PayU India, told ET. 
 
India has around 15 lakh PoS terminals, almost 74 crore (740 million) debit cards and 2.7 crore (27 million) credit cards. This data does not refer to wallets which are a parallel network. 
 
These mobile wallets too have started reaping the benefits of demonetisation. 
 
Card processing companies and banks have upgraded their bandwidth to process the rising number of payments. 
 
"I believe it will take around 18-24 months of consistent push from the authorities in order to bring about a behavioural shift in Indians. The habit of making payments through cash has to change so that people even make card transactions for small purchases," Manish Patel, founder of mSwipe, which also works with roadside stalls, told ET.

From average 5 lakh to 1.2 million per day, digital transactions have gone up by 25%, thanks to demonetisation

At a time when Modi government’s key agenda is building a <keyword id="6369124" type="UNKNOWN" weightage="20" keywordseo="cashless-economy">cashless economy</keyword>, especially after <keyword id="3315394" type="UNKNOWN" weightage="20" keywordseo="demonetisation">demonetisation</keyword>, Finance minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword>'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 &amp; 10% for general insurance. - Around 4.5 crore consumers purchase fuel every day. For those using cards and <keyword id="6388138" type="UNKNOWN" weightage="20" keywordseo="E-wallets">e-wallets</keyword>, 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 <keyword id="6362618" type="UNKNOWN" weightage="20" keywordseo="Kisan-Credit-Card">Kisan Credit Card</keyword> 
 
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.

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

Last Sunday Prime Minister in the radio programme ‘Mann ki Baat’, while addressing the country said, he wants the country to have less cash transactions, which will eventually make India a cashless economy altogether. No wonder, he won round of applause from the people. The basic aim of this, he said, is to curb black money and make sure each and everyone in the country pays tax to the government. 
 
There is no doubt about <a href="http://www.businessinsider.in/searchresult.cms?query=cashless&amp;sortorder=score">Modi’s goodwill</a>. However, before we start paying autowallahs and vegetable sellers in the neighbourhood through mobile app, let’s have a look at how the world’s first cashless economy in Sweden is doing. 
 
To believe media reports, Sweden is shaping up to be the first country in the world to plunge its citizens into a fascinating - and terrifying - economic experiment – a <a href="http://www.businessinsider.in/searchresult.cms?query=cashless&amp;sortorder=score">cashless</a> society. 
 
Sweden started the journey towards cashless economy since many years. Take a bus ride, buy a magazine or a chewing gum, digital payments are accepted everywhere. 
 
This is the country where, if you use too much cash, banks call the police because they think you might be a terrorist or a criminal. Swedish banks have started removing cash ATM machines from rural areas, annoying old people and farmers. There is a belief in the country that if you have to pay in cash, something is wrong. 
 
That sounds quite futuristic until you know the truth. The Interest Rate at Sveriges Riksbank, the central bank in Sweden is -0.500% since last February. 
 
Although retail banks are yet to pass on that negative to rate to Swedish consumers, the longer it's held there the more financial pressure there is for banks to pass the costs onto their customers. 
 
So here lies the danger. The commoners have to keep the money in bank and pay for it. They cannot withdraw cash and cash transactions are refused by retail stores legally. The senior citizens are the worst affected as they lack concentration to focus on mobile banking. 
 
It’s a fact that Swedish can’t hide their money. But citizens need to pay banks charges for keeping their money and that’s the way of survival. 
As per a Quartz report, surveys conducted by <a href="http://www.businessinsider.in/searchresult.cms?query=cashless&amp;sortorder=score">Riksbank </a>show that for transactions fewer than 100 kronor (approx. Rs 750), 41% of people still prefer to use cash. And the Swedish National Pensioners’ Organization, which represents some 400,000 of the country’s elderly, says 7% of its members never use bank cards. 
 
Now think of this situation in India. There are some millions of widows, unemployed and retired employees who thrive on bank interests for survival. After demonetization, we have seen interest rates of nationalized banks slumping down to 4%-5%, which is 3% below normal rates. Most people in the service sector has only one way to save their money – either through fixed deposits or several schemes, which gives a good percentage of annual increment. 
 
And what are the obstacles that can happen in a cashless society? There may be a rise in fraud rates, people’s discomfort about electronic footprints in <a href="http://www.businessinsider.in/searchresult.cms?query=cashless&amp;sortorder=score">semi urban and rural stores</a>. Another industry that would be badly hit by cashless economy is tourism, the proof of which has already begun to show in Sweden. A news report by The Guardian says that a grand music festival in Sweden sparked chaos after their payment system broke down. 
 
India heading towards a cashless economy is a great thing! But can the Indian middle class handle it?

Sweden is the world’s
first cashless economy and has negative bank interest rates. Can Indian middle
class handle it?

<ul class="summary-list"><li>I <a target="_blank" href="https://www.insider.com/american-moved-to-vienna-most-liveable-city-loves-it-2023-9">moved from the US to Vienna </a>in 2022 and I've loved it. </li><li>Vienna, the world's most livable city, has tons of great cafés.</li></ul>In June 2021, I left the US and boarded a <a target="_blank" href="https://www.insider.com/solo-travel-surprising-things-american-in-europe-2023-3">plane to Europe</a> to look for a place to call home.After trying out a bunch of spots, from Lisbon to Warsaw, I fell in love with Vienna after only spending six weeks there. In March 2022, I began to call it home.Later that same year, Vienna reclaimed its title as the <a target="_blank" href="https://www.economist.com/graphic-detail/2022/06/22/the-worlds-most-liveable-cities">world's most livable city</a>. And this year, it <a target="_blank" href="https://www.economist.com/graphic-detail/2023/06/21/the-worlds-most-liveable-cities-in-2023">won that title</a> again.So far, I've loved living here and there have been many surprises. Here are some of the biggest ones I've encountered so far.<h2>Rent is affordable</h2>The first time someone told me they pay €500 (about $533) monthly for rent with one roommate in Vienna, I imagined some terrifying basement apartment with no windows. I was wrong.In my last Vienna apartment, I had windows (European tilt-and-turn ones) and, at one point, I even had <a target="_blank" href="https://www.insider.com/park-with-most-cherry-blossoms-new-jersey-branch-brook-review-2023">cherry blossoms</a> just outside them. Most of my friends here pay under €1,000 for their spacious apartments in buildings with elevators in the city center. That same rent budget wouldn't get you much in the heart of New York City.The New York Times has even said Vienna is pretty close to "<a target="_blank" href="https://www.nytimes.com/2023/05/23/magazine/vienna-social-housing.html">renters' utopia</a>."<h2>Vienna has over 2,000 cafés</h2><div type="image" title="A cafe with columns and large windows and rattan chairs in front of marble tables in Vienna" height="1280" width="960" msid="105210443" hostid="261" sizebytes="120550"></div>The coffee culture in Vienna is a big deal, so much so that <a target="_blank" href="https://www.unesco.at/en/culture/intangible-cultural-heritage/national-inventory/news-1/article/viennese-coffee-house-culture">UNESCO</a> lists it as an "intangible cultural heritage" in Austria.There are cafés on every corner and many will make you feel like you've been transported back in time with antique furniture, servers with silver platters, and marble tables.Although to-go coffee is available around the city, the culture invites you to sit and slowly sip your coffee.<h2>Just about everything is closed on Sundays</h2>If you don't <a target="_blank" href="https://www.insider.com/aldi-vs-lidl-review-differences-which-better-photos-2021-5">grocery shop</a> by Saturday late afternoon, you're out of luck on Sunday.In Austria, stores are required to close on Sundays. Some cafés, restaurants, and bakeries stay open, though.Part of this stems from religious traditions of keeping Sundays a day of rest, but it's also about preserving the quality of life.I'm still getting used to it.<h2>Vienna is accessible — even to other countries</h2><div type="image" title="Author Sonya Matejko on a bike in front of a body of water in Vienna" height="960" width="1280" msid="105210447" hostid="261" sizebytes="179062"></div>I loved riding the subway and getting around on foot when I lived in New York City, so I was so pleased to discover that the <a target="_blank" href="https://www.insider.com/surprising-things-i-noticed-moving-from-nyc-to-la-2020-3">public-transportation system</a> in Vienna is even better.With the metro, tram network, buses, and bike lanes, you can (mostly) get anywhere in the city in 30 minutes or less.Beyond being accessible inside the city, it's also easy to travel to other beautiful cities. You could be in Prague or Budapest by bus or train in three hours.Or, you can take a train in the city center to the airport in 16 minutes, then fly to Krakow or Split in an hour.<h2>There are cultural events galore</h2><div type="image" title="Photo of a night holiday market in Vienna with lit-up stands for sellers and people walking on cobblestone streets" height="720" width="960" msid="105210449" hostid="261" sizebytes="104910"></div>Strolling home one night two years ago, I saw a line forming outside the Museum Quarter for a free symphony. Moments later, I joined hundreds of people enjoying the classical music concert.But what felt like a once-in-a-lifetime experience turned out to be commonplace in Vienna.Cultural activities are abundant and many events, like classical music performances and art shows, are free or affordable.Let's also not forget the other outdoor happenings like Christmas markets, Easter markets, bike festivals, wine fairs, and more.<h2>Many places are cash-only</h2>I love living in Vienna but hate carrying cash to live here.As many societies move toward the cashless economy, it constantly surprises me how many restaurants, cafés, and even some stores are cash-only in this city.And when you leave the city, say, go to the countryside, you certainly want cash on hand. This is the only surprise I still struggle with.<h2>Urban vineyards grace Vienna</h2>Vienna's vineyards are incredible, especially at sunset.I regularly visit them and, much to my surprise and delight, I can get to some vineyards with just a 30-minute tram ride from the city center.<h2>Vienna is surrounded by nature</h2><div type="image" title="Yellow flowers, trees, and shrubs in a park in Vienna" height="960" width="1280" msid="105210450" hostid="261" sizebytes="171320"></div>Before moving here, I had no idea about the access to nature Vienna affords its residents.I've also since learned that about 50% of Vienna is covered by green space. Beyond the parks, you have the wine hills, hiking trails, and water activities. I took my first ski lessons in a decade just an hour outside Vienna.In <a target="_blank" href="https://www.insider.com/first-long-train-mistakes-amtrak-things-to-know-before-booking-2022-8">a few hours by train</a> or car, you can get to the Austrian Alps or one of Austria's beautiful lakes.<h2>Some pets in the EU get passports</h2><div type="image" title="Hand holding a cat's passport in front of an orange cat sitting on a table" height="1060" width="795" msid="105210452" hostid="261" sizebytes="55396"></div>Last December, the guy at TSA couldn't help laughing when he saw my cat's passport when we <a target="_blank" href="https://www.insider.com/surprising-things-about-moving-from-us-to-uk">returned to the US</a> for the holidays last year.I get it because I laughed, too, when my local veterinarian told me my 12-year-old cat would get an Austrian passport so he could travel.These passports are available for cats, dogs, and ferrets in the EU.

You Searched For "cashless economy" and got 6 results

You may need to show PAN card for small transactions too. Here are the details

BI India Bureau

Get ready for ‘cash tax’. Here’s what it is

BI India Bureau

From average 5 lakh to 1.2 million per day, digital transactions have gone up by 25%, thanks to demonetisation

BI India Bureau

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

Anushree Singh

Sweden is the world’s first cashless economy and has negative bank interest rates. Can Indian middle class handle it?

Suchayan Mandal

I left the US to move to Vienna, the world's most livable city. Living here has been delightful and filled with surprises.

Sonya Matejko

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