New Delhi: Very soon you will have to compulsorily use credit card instead of cash for a grand feast at a five-star hotel as the government has plans to limit the use of cash for high-value transactions in order to grab the black money offenders.
According to finance secretary, Rajiv Mehrishi, “Several things are under consideration, for example incentivizing banks”. He says there are transaction costs which government can perhaps share.
“But there are also otherwise, you know what I would say to disincentivize 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”, he added while he was speaking at a press conference on Monday.
It is learnt that his comments will be further stamped by a committee that will come out with structures to encourage usage of credit or debit cards.
Apparently, the statement comes soon after tough measures were announced by Finane Minister Arun Jaitley in the budget to curb black money. Jaitley had announced in his budget speech that the government will announce incentives to encourage card usage by consumers to curb black money flow into the system.
Additionally, the minister's statements are also seen to be taking cue from the SIT on black money. He had said that he wanted to incentivize credit and debit card transactions, and disincentivize cash transactions.
The SIT had suggested that the government should put a limitation on cash holdings for private use and including provisions for confiscation of cash held beyond prescribed limits.