At a Less Cash India Summit held at New Delhi on Friday by the Confederation of All Traders (CAIT) trade leaders from all over the Country unanimously resolved to intensify adoption of digital payments in their existing business format.
It is a step forward in pursuance of the clarion call of Prime Minister Narendra Modi to adopt digital payments as also a preparatory step for GST taxation system since electronic payment is one of the core fundamental of GST regime, said CAIT.
More than 300 trade leaders from 26 States of the Country are attending the two days Summit. At the conclusion of the Summit, CAIT will ratify by its members a Delhi Declaration which will endorse Less-Cash economy vision and call on Government of India to adopt a ten point charter released at the Summit today. The CAIT has also released a White Paper on adoption of Digital Payments.
While addressing the Summit, Ramesh Abhishek, Secretary, DIPP emphasised that merchants and traders are at the forefront of demonetisation effort and called for meaningful engagement and incentives to aid businesses in digital adoption.
“The Government has been on the forefront of enabling a less cash economy. The move to incentivize cashless transactions and drive acceptance through installation of point of sale (POS) machines, low cost acceptance infrastructure, and rationalization of merchant discount rate will enable the movement further,” he said.
Speaking at the Summit,CAIT Secretary General Praveen Khandelwal said: “We are well aware that India is traditionally a cash-based economy, with the value of physical currency in circulation estimated to be over 11 per cent of GDP, highest in 16 years and within BRICS nations. China has seen a steady decrease in the ratio over the last 16 years (now at roughly 9 per cent), with Russia to be at 9 per cent and Brazil to be at 3 per cent. Before we embarked on this campaign with our partner global technology solutions leader Mastercard, we did some research and found that India stood at just 10 per cent of population doing cashless transactions with specific reference to Sweden (97 per cent), Belgium (93 per cent), France (92 per cent), Canada (90 per cent), UK 89 (per cent).”