The use of cash increased in the country, the Finance Minister explained the reason in the Parliament
Finance Minister Nirmala Sitharaman said that the number of notes in circulation has seen an annual growth of 7.98 percent. He told that the number of such notes has reached Rs 31.92 lakh crore till the date of 2 December 2022.
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Finance Minister Nirmala Sitharaman said on Monday that the number of notes in circulation has seen an annual growth of 7.98 per cent. He told that the number of such notes has reached Rs 31.92 lakh crore till the date of 2 December 2022. The demand for currency depends on many macro economic factors. These include economic growth and the level of interest rates. He has said all these things during his reply in the Lok Sabha.
Government aims to reduce cash
The amount of cash or bank notes in the economy depends on meeting the banknote needs. Keeping in view the GDP growth, inflation, replacement of bad notes and growth in non-cash means of payment, the needs of notes have to be met.
Sitharaman emphasized that the government’s mission is to move towards a less-cash economy, thereby reducing the generation and circulation of black money. And boost the digital economy. He further said that both the government and the RBI have taken steps to promote a less-cash economy and digital payments.
RBI gave this suggestion to banks
Speaking on the rationalization of Merchant Discount Rate (MDR) for debit card transactions, he said that RBI suggested banks to ensure that merchants do not pass on MDR charges to customers while accepting payments through debit cards. deliver.
The Revenue Department suggested immediate refund of the charges deposited to the bank. He has said that any charge deposited after January 1, 2020 should be refunded. These charges are levied on transactions carried out using electronic means as defined under section 269SU of the Act. The minister also said that it has also been asked not to levy charges on any transaction in future through prescribed channels.
Responding in the House, Minister of State for Finance Pankaj Chowdhary said that by definition crypto assets are borderless and require international cooperation to prevent regulatory violations. He said that therefore, any legislation on this subject would be implemented only with adequate international cooperation.
