Government indulging in ‘extortion’ in name of Digital India: Congress

New Delhi, March 7 (IANS): The Congress on Tuesday alleged that the Narendra Modi government was indulging in “plain extortion” in the name of Digital India by levying various taxes and charges on digital transactions.

“After forcing the devastating decision of demonetisation upon the people of India, the Narendra Modi government is brazenly indulging in organised loot and legalised plunder in the name of digital transactions,” Congress spokesman Randeep Singh Surjewala said here.

“In the name of digital transactions, last year the government earned Rs 6,750 crore through taxes/charges from us. This year, this amount is expected to climb to Rs 26,000 crore,” he added.

He said that there are five types of charges/taxes levied by the government, viz, Merchant Discount Rate (MDR) when one pays through cards, over the counter transaction charges, charges on ATM transactions after a fixed number of transactions in a month, charges for not maintaining a minimum balance and charges on online transactions.

“We were told the cost of printing new currency notes would be around Rs 12,000-15,000 crore. To recover this cost, the government is now levying all kinds of charges and taxes. This is nothing but plain extortion in the name of Digital India,” he added.

As of now the Merchant Discount Rate (MDR), that is, the rate charged to a merchant by a bank for providing debit and credit card services, which is paid by the consumer is 0.25 per cent for a debit card transaction worth Rs 1,000; 0.5 per cent for a debit card transaction worth Rs 1,001 to Rs 2,000; and one per cent for a debit card transaction more than Rs 2,000.

Surjewala pointed out that the banks have started charging Rs 150 per transaction for cash deposits and withdrawals beyond four free transactions in a month.

According to new rules, up to five non-home branch transactions will be free, subject to a maximum per-day deposit of Rs 50,000. For larger deposits or the sixth transaction, bank would charge Rs 2.50 per Rs 1,000, or Rs 95 per transaction, whichever is higher.

“These charges amount to burning holes in the pockets of the hard working honest citizens. Why should people pay to withdraw and deposit their own hard earned money?” Surjewala said. The Congress leader also criticised the State Bank of India’s reintroduction of “minimum balance” rule for savings bank accounts under which a customer would be charged an amount for not maintaining a minimum of Rs 5,000 in his account.

Modi taunts note ban critics

Bharuch (Gujarat): Prime Minister Narendra Modi on Tuesday taunted critics of demonetisation and said the country was on the road to unprecedented economic growth.

“When we announced the decision to fight corruption and black money in November, many rumours were spread, allegations made that everything would collapse, the economy would crumble,” he said.

“Some people had to suffer. But the last quarter report suggests that the steps initiated in November have helped India move forward,” he added.

Modi said India was the brightest star amidst a turbulent global economy.

He quoted several global corporate leaders and economists to hit out at critics of his decision of the November 8 demonetisation. He said Apple Inc CEO Tim Cook, Microsoft chief Bill Gates and Nobel laureate Mohammad Yunus backed the demonetization of Rs 1,000 and Rs 500 currency that caused an unprecedented cash crunch in the country.

“When black money is wiped out from the economy, every sector, be it social or economic, benefits. The world is viewing this decision with a lot of respect,” Modi added.

He said his government had also successful in curbing food prices.

“You would have seen this in the just concluded election campaign. All the parties accused us of many things but none could accuse us of not curbing price rise.”

Speaking at another public function at Bharuch to dedicate India’s longest cable bridge, the Prime Minister announced the launch of several projects for Gujarat. This includes the conversion of several state highways into four lanes by according them the status of National Highways. He said his government would spend Rs 12,000 crore for this purpose.

He recalled former Gujarat Chief Minister Keshubhai Patel and praised him for his vision for initiating several road projects in the state.

Modi displaced Keshubhai Patel to become Gujarat’s Chief Minister in 2001. The the Patel community is now up in arms against the ruling BJP in Gujarat. Meanwhile, posters asking the PM “Go Back” surfaced surprisingly near the BJP state headquarters in Gandhinagar.

The posters are alleged to have been put up by protesters from the Patel community that has been agitating for quotas in government jobs and educational institutions for the last two years.