TIL Desk/Business/New Delhi-As part of its efforts to promote digital payments after demonetising old high value notes, the government today nudged shop owners to use debit cards, saying it will reduce cash handling costs while digital transaction records will help them seek more funds from banks.
Merchants will benefit by encouraging debit card transactions as cost of digital transaction is lower than handling cash and deposit of cash is not required as the amount will be automatically credited to account, Finance Ministry said in FAQs on debit cards.
Credit history is created for the merchant which will help him in taking more support from banks and other financial initiatives of government time to time, it said. Accepting payment cards, it added, can enable merchants to increase their revenues and promotes better customer service.
“Electronic payments offer customers more flexible payment options-faster checkout times for customers and a more efficient way of paying. Also, innovations such as Equated Monthly Instalment (EMI) payments, allow consumers the ability to purchase and take possession,” the ministry said.
