Digital Adoption Summit demands Credit Guarantee Fund for Digital Payments

New Delhi: At a Digital Adoption Summit held at New Delhi on Friday under the umbrella of the Confederation of All India Traders (CAIT), leaders of different verticals of non corporate sector demanded the government in a unanimous voice to set up a Credit Guarantee Fund to cover the card payment users from fraud or other illegal activities that may happen with digital payments.

Such a scheme will insure the users and will generate confidence in usage of digital payments thereby leading to faster adoption of electronic payments in the country. The banks will be more inclined to give sufficient credit on usage of cards which will enhance adoption.

The summit was attended by representatives of leading national organisations of traders, transporters, farmers, hawkers, consumers, self employed groups and women entrepreneurs beside officials from Banks, Financial Institutions, Technology providers and Payment Acceptance Solution Providers. The Summit was chaired by CAIT National President BC Bhartia.

The summit demanded to set upset up an independent Payments Regulatory Board as per recommendation of the Wattal Committee report along with Board for Digital Payments comprising of stakeholders from self-organised sector should be intensified.Scrutiny over transactions made via card should be abolished as trail has already been established.

All and any surcharging should be removed for card payments to not make digital payments more expensive than cash. The incentives and reward schemes must include all sorts of digital payments provided by any payment solution provider i.e. card, mobile wallet, mobile application, QR code and others.Banks treat fintech players who provide services ‘Card Not Present’ as e-commerce thereby charging higher MDR. On the contrary, it allows card usage (already stored) and eliminates necessity, cost of carrying a card, it said.