As a part of its initiatives towards making India a “cash-less” economy, the government recently stated that any business with an annual turnover of Rs.50 crore will have to provide (prescribed) digital payment facilities to its customers from February 1, 2020. And they will be charged with a hefty fine of Rs 5,000 per day on failing to do so!
“In order to allow sufficient time to the specified person to install and operationalise the facility for accepting payment through prescribed electronic modes, it is hereby clarified that the penalty shall not be levied if the specified person installs and operationalises the facilities on or before January 31, 2020,” a notification issued by the Central Board of Direct Taxes (CBDT) said.
The government is hoping that this move will not only help push the digital India initiative but also help in the development of the economy overall.
Merchant Discount Rates (MDR) Waived Off From Jan 1, 2020
Finance Minister Nirmala Sitharaman recently also announced that the MDR charges for businesses with over Rs 50 crore annual revenues will be waived off from January 1, 2020. MDR is the percentage of the digital transaction that a merchant pays to banks.
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It is not just the government, but people too want everything digitized. According to stats, more than 1 billion people are willing to carry out transactions online. The digital transformation of payments in India is inexorable. And businesses should take leverage of the technology and innovations online payment solution providers give.
Done well, payments can be a gateway for broader digital financial services. For this, the digitization of SMBs and consumers is crucial. While some businesses have been quick to transition into the digital world, many SMEs are yet to put the technologies at work.
If you too still haven’t started accepting online payments yet, sign up on PayU now. You can start accepting within minutes after signing up on PayU. We offer an omnichannel product suite that serves the payment needs of all businesses. You have a website or you don’t have a website, you want to accept payments online or offline, through QR code or by sending a payment link to your customer via WhatsApp or message, PayU can be your trusted payment solution provider at all times.
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