In order to promote digital transactions, the government is going to remove service tax on debit and credit card transactions of up to Rs 2,000.

With another add on, the government declared that those who purchase petrol through debit or credit card, they all will get 0.75% discount.

Finance Minister Arun Jaitley said "Insurance cover worth Rs 10 lakh for those who book railway tickets online".

"The government has decided to exempt services by an acquiring bank to any person in relation to settlement of an amount up to Rs 2,000 in a single transaction transacted trough credit, debit card or other payment card service," sources said.

Finance minister Arun Jaitley will hold a meeting in Parliament in order to inform everyone.

Huge cash crunch is being seen in the country following demonetisation of old high value notes. People are lining up outside banks and ATMs for withdrawing money.

The government is taking  several steps in order to promote cashless or digital transactions. This will take India towards a less-cash economy.

Recently, the government also asked all banks to introduce additional 10 lakh PoS terminals by March 31 in different parts of the country.

Also Read: ICICI hikes ATM charges

BY M. DIVYA SRI