Post Budget 2019 Reaction by Mr. Ramaswamy Venkatachalam, Managing Director – Banking and Payments, FIS

We believe the Union Budget 2019-20 has laid robust foundation for digital payments growth in the country. The government has taken number of initiatives to promote digital payments in the country, this will indeed persuade people to purchase goods and services through digital banking transactions. The government proposal to levy TDS of 2 percent on cash withdrawal exceeding Rs 1 crore in a year from a bank account will encourage MSMEs to conduct business through digital route. We believe BHIM, UPI, Aadhaar Pay, NEFT, RTGS will be more used by the businesses making India less cash economy, as the government has announced that commercial establishments with annual turnover of Rs 50 crore will have to use these modes of payments while no charges or merchant discount rates will be imposed on customers or merchants. This is a very reassuring move to stimulate digital payments in the country, particularly in Tier II and II cities. We are already witnessing a huge surge in digital payments in urban areas, the trend is likely to expand in remote parts of the country through easy availability of easy data services. Continued improvement in telecom infrastructure and access to mobile and Internet banking will be crucial for such expansion.

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