Union Finance Minister Nirmala Sitharaman replying in Parliament.

The date of November 8, 2016 and PM Narendra Modi's address at 8 pm... this historical event will be remembered by all.

All the families had to see and bear the impact of the announcement of demonetisation.

Many arguments were given in favor and many arguments were given against.

Today, six years have passed since this incident and it is being estimated whether demonetisation has benefited or suffered losses and it is also being speculated whether the reasons that led to its implementation have gone away now.

Did demonetisation live up to the plans of the government or backfired.

Even today all the experts praise it, while many now keep their point against it by talking about the figures. 

(a) whether the Government is aware of the fact that even after five years of demonetisation on November 8, 2016, there is a steady increase in the currency in circulation and if so, the details thereof; 

(b) the actual figures relating to the total amount of cash with the public as on date along with the percentage increase in the same as compared to the previous year; 

(c) whether the Government proposes to continue with cash back schemes to encourage use of credit/debit cards and other modes of digital payments to encourage less use of cash for financial transactions and if so, the details thereof; What; 

(d) whether the Government is aware of the fact that digital payment providers are charging service charges for money transfer from credit/debit cards;

And 

(e) if so, the steps taken by the Government to improve the digital payment system without any indirect service charges levied by the service providers? 

These questions were answered by Finance Minister Nirmala Sitharaman.

He said that -

A to D. Answers have been placed on the table. 

TO BE ANSWERED ON 19.12.2022 BY P. VELUSAMY REGARDING 'Circulation of Cash in the Economy' ANSWERED ON THE LOK SABHA STARRED QUESTION NO.

The details referred to in reply to 178 are as follows.

(a) The demand for money depends on a number of macroeconomic factors, including economic growth and the level of interest rates.

The following are the figures of currency notes (NIC) from 2016 to 2022 (as at the end of March each year):

c): Ministry of Electronics and Information Technology, Government of India had launched BHIM (Bharat Interface for Money) Cashback Scheme for Merchants to promote the use of BHIMUPI among merchants and encourage transactions through BHIM-UPI and it The scheme was operational from June 5, 2017 and was closed on June 30, 2018. 

(d) & (e) The Government's mission is to move towards a less cash economy so as to reduce generation and circulation of black money and promote digital economy.

Vide the Finance (No. 2) Act, 2019, section 269WS was inserted in the Income-tax Act, 1961 (the Act) so as to provide that every person carrying on business shall facilitate, if any, other electronic means of payment is being provided by such person, if his total sales, turnover or gross receipts during the previous year exceeds Rs.50 crores;

Shall facilitate acceptance of payments through prescribed electronic means. 

Section 27IDB was inserted to ensure compliance so as to provide that failure to facilitate electronic means of payment prescribed under section 269WS shall attract a penalty of Rs.5,000 for every day during which such failure continues. Fine will be imposed. 

In addition to the above, the Payment and Settlement Systems Act, 2007 was also amended to provide that no bank or system provider shall, directly or indirectly, be required to use the means of electronic payment prescribed under section 269WS of the Act. No fee will be imposed on anyone. 

The Department of Revenue (DoR) vide Notification No.105/2019 dated 30.12.2019;

Rule 119AA was inserted in the Income-tax Rules, 1962 to provide for the following mode of payment for section 269WS: 

i) Debit Card powered by RuPay; 

(ii) Unified Payments Interface (UPI) (BHIM UPI);

and 

(iii) Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM UPI QR Code).

Department of Revenue vide circular no. dated 30.08.2020.

16/2020, banks have been directed to immediately refund the fee, if any, collected on transactions carried out using electronic means prescribed under section 269WS of the Act and through the prescribed channels Advised not to levy charges on any transaction in future.

Further, the RBI has also notified the "Merchant Concessional Rate (MDR) for Debit Card Transactions". 

Further, RBI vide circular dated December 6, 2017 on “Rationalization of Merchant Concession Rate (MDR) for Debit Card Transactions” advised banks to ensure that through debit cards on-boarded by them Do not charge Merchant Discounted Rate (MDR) to customers while accepting payments from

As per the RBI's circular dated March 17, 2020 on "Guidelines on Regulation of Payment Aggregators and Payment Gateways", payment aggregators (PAs) shall ensure that the extant instructions with regard to MDR are followed, and the facility fee, handling fee, Information about other charges like etc., if any being levied, will also be displayed by the PA in advance.

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