India pushes e-payments in 2017

The Indian government is continuing to push e-payments in the country by exempting a number of duties from POS equipment and devices.

Finance Minister Arun Jaitley announced in his budget speech earlier this month that the government would halt duties in an effort to bolster cashless payment methods, whilst simultaneously cutting taxes on specific payment terminal components in a bid to boost domestic manufacturing of the devices.

“To promote cashless transactions, I propose to exempt BCD, Excise/CV duty and SAD on miniaturised POS card readers for m-POS, micro ATM standards version 1.5.1, fingerprint readers/scanners and iris scanners,” said Jaitley.

The market in e-payments got a boost last November when high-denomination currency notes were withdrawn from circulation.

The government is also proposing to strengthen the digital payment infrastructure in India as well as mandating all government receipts through digital mechanisms.