Niti Aayog sets up committee on digital payments

The Niti Aayog has set up a committee to suggest ways to promote digital payments, and has invited comments from all the stakeholders by October 10.

The panel was set up in August under the chairmanship of former finance secretary and Aayog's Principal Advisor Ratan P Watal to review the framework on digital payments to move towards a cashless society.

The Committee invites specific suggestions from all stakeholders (individuals, companies, NGOs), which will help achieve a vision of less cash economy over the medium term. The last date of submission is October 10, 2016, Niti Aayog said.

The stakeholders may submit suggestions related to legislative/regulatory aspects, government payment systems, leveraging eKYC and payments history, and other measures for improving the payments ecosystem, the government think tank said.

The Committee has been tasked with framing recommendations to foster the growth of digital payments by addressing underlying issues. The 11-member committee will recommend various measures to incentivise transactions through cards and digital means, such as through tax rebates/incentives and the introduction of cash back/lottery. The panel has been asked to submit its report in one year.

The panel, which will review the payments system in the country and recommend measures for encouraging digital payments, had been set up following a decision taken by the Cabinet in February.

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Earlier this year, the CEO of NITI Aayog, Amitabh Kant, had confirmed the participation of over 6,000 applicants for Tinkering Labs this year, of which, he would support 500. Schools with classes from the 6^th to the 12^th standards are eligible to apply for support for tinkering labs. If selected, they would get a grant of Rs 10 lakh for equipment like do-it-yourself kits and 3D printers, and Rs 10 lakh over five years for operational expenses. The selection process, he said, captures presentation skills and the ability to find solutions to problems. Applications have been received from across the country, including the north-east. The only condition is that the schools must provide 1,500 sq ft of built-up space and faculty, who will be trained at government expense.

The tinkering labs and centres to incubate startups and support those that are already engaged in incubation are part of the Atal Innovation Mission, whose purpose is to foster creative thinking and entrepreneurship.