Increase In Digital Payment Will Help In Better Estimating GDP

Increase in digital payment will help in better estimating GDP of the country: Finance Minister

Finance Minister Nirmala Sitharaman said on Friday that the increase in digital payments would help in better assessing the country’s economic growth and the tax authorities would suggest a shift to their clients towards digital modes of payment.

She said that the government, irrespective of the party in power, tries to increase the tax collection and at the same time, tries to reduce the tax burden on taxpayers in pursuit of their revenue collection.

In this case, the tax authorities can play an important role in ensuring timely compliance by taxpayers.

The Finance Minister said at the National Tax Conference 2020 organized by the All India Federation of Tax Practitioners, “As we are moving towards digital transactions, we hope that cash transactions will reduce people’s fascination.

As long as it is such a small amount Maybe it cannot be switched to digital mode. Digital modes of transactions are always encouraging because every transaction is recorded somewhere like this.

She said India’s gross domestic product (GDP) would remain “underestimated” if commercial transactions did not fall under the monitored radar.

She said, “If all these transactions are brought in a surveillance network, then the GDP calculation can reach close to the true potential of the Indian economy.”

NPCI brings new rules to limit the use of Google Pay, Phone Pay and other UPI apps, will be applicable from January 1

There is big news for those making UPI payments through third party payment apps like Google Pay, Paytm, Phone Pay etc.

The National Payments Corporation of India has decided to impose a 30 percent cap on third-party app providers from January 1, 2021. NPCI has taken this decision to end the monopoly of third party apps. NPCI said this in a press release.

With the National Payments Corporation of India (NPCI) imposing a 30 percent cap on third party app providers, these apps will not become a monopoly in UPI transactions. This decision will prevent the monopoly of third party apps in the coming times.

It has been reported by the government that about 200 crore UPI transactions are taking place in the country every month.

These UPI transactions are happening through various payment apps. The government says that in the coming days the figure of UPI transactions in the country will increase further.

This is a good sign for the goal of Digital India. But there is also scope for monopoly of any third party app in case of UPI transactions, which is not correct.

In view of this, NPCI has decided that any one third party app will be allowed only 30 percent of the total volume of transactions.