Electronic transactions added burden, claim traders

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NEW DELHI: While the government works towards making India a cashless economy, traders continue to see electronic transactions an added burden.

The Confederation of All India Traders (CAIT) said on Tuesday that the government needs to address issues related to high transaction costs and poor internet connectivity in order to move people away from cash.

“Taking payments through credit card means an additional 2% needs to be paid per transaction to the bank. It is only 0.75% for debit cards. Payment wallets too charge 2%. This is over and above the infrastructure and maintenance cost that have to be borne by the trader,” CAIT general secretary Praveen Khandelwal said.

The commerce ministry and NITI Aayog have asked CAIT to submit a list of issues within two weeks. “We would take up the issues with the concerned departments and also with the state governments,” Department of Industrial Policy and Promotion (DIPP) secretary Ramesh Abhishek said.

Meanwhile, NITI Aayog CEO Amitabh Kant said small traders play an important role in boosting the economy, but should adopt new technologies to grow. “India is the only country where we have billion mobiles… old companies got disrupted because they did not adopt new technologies,” Kant said.