Waiving Rs 80 crore GST can boost financial inclusion

The outcome of the polls has paved the way for far reaching decisions in many areas. Financial inclusion is one such domain.

Key enablers of digital financial inclusion are already in place — such as the policy, platform, participation, providers, public and promise.
The banking infrastructure has evolved over years and strategic policy changes have helped in building a stable and credible environment. Financial sector reforms have also simultaneously strengthened the overall digital infrastructure by encouraging innovation and quick adoption of new solutions.

Innovations in the recent years particularly, have facilitated harnessing digital infrastructure with open banking APIs from banks and crowd sourcing of retail network.
With the intent clear, agenda set and mandate granted, officials across departments are working together with the industry to make this happen. While RBI has effectively liberalised the platform for inclusion over the past decade through various guidelines, a fine math would highlight that the vagaries of technology advancement in the payments system has yielded an unwarranted tax impact, negating the intent of a well-meaning policy.
Actualise the intended and announced GST waiver on financial inclusion for PMJDY accounts and accounts in rural areas, by, applying the waiver for all financial inclusion services offered by Business Correspondent (BC) agent outlets. This is a channel used mostly by poor migrants who either hold a PMJDY account or a normal bank account a rural branch.

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