Digital India: Railways to soon launch its own debit card
What's the story
In a major push towards cashless economy, Indian Railways will soon launch its own debit card in association with State Bank of India (SBI) and Indian Railway Catering and Tourism Corporation (IRCTC). To further promote online booking, it will also organize monthly lottery and give 100% cash-back to 10 winning passengers, reported The Financial Express. Read on to know more.
Details
IRCTC lost Rs. 600 crore post demonetization
The new debit card can be used for making payments for any transaction. The decision comes in the wake of IRCTC losing Rs. 600 crore post demonetization, which prompted Railways to waive charges for booking tickets online (Rs. 20 for sleeper; Rs. 40 for AC). The wavier was meant to last only till June 2017, but now has been extended till March 2018.
Incentives
Indian Railways to make 85-90% of its total payments cashless
This is the latest in a series of initiatives taken by Indian Railways to promote digital transactions. Last month, it launched payment of penalties and other additional fares through debit/credit cards. It is also giving passengers a 0.5% discount on buying monthly passes online. With 95% of its freight transactions cashless, Indian Railways now reportedly aims to make 85-90% of its total payments digital.