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Over Rs 5000 payment to 5-star hotels only through Card, step to check use black money

March 03, 2015 05:57 AM
Use Bank cards for hotel payments mendatory

 

Chandigarh: Seeking to curb the use of cash for high-value transactions and check the flow of black money in the economy, the government may make it mandatory to undertake certain transactions — such as payment of hotel bills beyond a specified limit. 

Finance minister Arun Jaitley in his maiden full-year Budget had said the government will announce incentives to encourage card usage by consumers to curb black money flow into the system. 



"Several things are under consideration, for example incentivising banks ... you know there are transaction costs which government can perhaps share. But there are also otherwise, you know what I would say to disincentivise cash transaction, any expenditure by a person in a five star hotel above Rs 5,000 have to be settled using credit card, there can be also decisions like that," finance secretary Rajiv Mehrishi told reporters at a press conference on Monday. 

Mehrishi's comments are just pointers to steps that may be offing as the final decision will be based on measures to be suggested by a committee that will come out with structures that can be put in place to encourage use of credit or debit cards. The statement comes two days after tough measures were announced in the budget to curb black money. 

Finance minister Arun Jaitley in his maiden full-year Budget had said the government will announce incentives to encourage card usage by consumers to curb black money flow into the system. 

 

 

 

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