Digital payments are going to get another boost in the country. At the ongoing budget announcement by Finance Minister Nirmala Sitharaman, a special mention around digital payments were made. According to Sitharaman, to further digitise the payments system in India and discourage business payments in cash, 2-percent TDS (tax deducted at source) will be levied on the withdrawal of more than Rs 1 crore annually.
Additionally, businesses with more than Rs 50 crore turnover will have to provide various digital payment solutions like BHIM, UP and Aadhaar pay. There will be no charges or merchant discount rates imposed on customers or merchants. The Reserve Bank of India and various other banks will absorb these costs.
Ever since the announcement of demonetisaition in 2016, digital payment services have seen a massive jump. Today users in India can make use of Paytm, Google Pay, PhonePe, and the government approved BHIM and UPI. Even WhatsApp is soon expected to launch a digital payments service on the messaging service.