Payments firm Indepay Networks on Friday urged the government to remove service tax from all card-based transactions to promote digital payments.
"Removal of service tax in case of all card-based transactions is essential. This exemption should, in fact, apply to banking correspondents as well, in order to extend the reach of financial inclusion to the remote and under- banked and non-banked areas of the country," Indepay Network President and CEO Rajib Saha said in a statement.
He also emphasised on the need to encourage digitisation of agriculture cooperative societies, Regional Rural Banks, and Cooperative Banks.
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Post demonetisation, the government has been pushing for a less cash economy and promoting digital transactions in a big way. Digital payment channels like mobile wallets, USSD and RuPay have seen massive uptake and rise in transactions post demonetisation of high value currency on November 8.