Fuel and Toll Will Be Cheaper If You Pay Via Digital Mode: Arun Jaitley

It's been over a month since the Indian Government banned old Rs. 500 and Rs. 1000 notes, which is taking a toll on general public. In a bid to promote cashless traction and less cash economy, the Finance Minister, Arun Jaitley today announced 11 measures that the government has taken to expedite the digital switchover, including discount on fuel rates and an array of services like toll tax, when paid via the digital medium.

Jaitley said that around 4.5 crore consumers purchase fuel every day and those using cards and e-wallets, petrol and diesel purchases will now attract a 0.75 per cent discount. In addition to that the Finance Minister also announced a 10 per cent discount for people who pay digitally and use Smart TAGs and RFID facilities at toll plazas on national highways.

10 Per Cent Discount at Toll Plazas On Use of Smart TAGs and RFIDs

Announcing the 11 decisions to promote digital transactions, Finance Minister Arun Jaitley said "We were using an excessive amount of cash and a very very limited amount of digital transactions till November 8," he said, adding there is the cost of transacting in cash which has to be borne by the economy. He also added that the government will waive off service tax on all card transactions of up to Rs. 2,000 on fuel, insurance and even railway tickets. The cost of these discounts will be borne by the concerned institutions.

Among other services, there will be a 10 per cent and 8 per cent discount offered on general and life insurance policy bought by paying premium online via PSUs websites. Monthly and seasonal suburban railway tickets purchased through digital mode will get 0.5 per cent discount from 1st of January 2017. In addition to that, 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.

Despite the 0.70 per cent discount the difference in fuel rates are highly marginal, which can been seen in the table below. (Amount Is For Per Litre)