No discount on digital payments

New Delhi, Aug 03: In a shocking news, The cashback was offered at petrol pumps to promote digital payment slashed, the incentive has been cut to 0.25 percent from 0.75 percent, people with knowledge of the development said.

Beginning December 13, 2016, a discount of 0.75 percent was offered to those using plastic money to buy petrol and diesel. This discount was given by way of cashback, which has been credited to the buyer's account within three days of the transaction.

Oil companies have now informed the petrol pump operators that the discount has been cut to 0.25 percent, they said citing mobile text message sent to petrol pump operators.

"Dear Business Partner, Kindly note and inform your all customers that Digital Cashback has been revised from 0.75 percent to 0.25 percent with effect from August 1, 2018, across oil industry for all loyalty customers," said the text message sent by state-owned oil companies to petrol pump operators.

The 0.75 percent discount on payments made using either credit/debit cards, e-wallets or mobile wallets translated into a rebate of 57 paise a liter on petrol and 50 paise on diesel. The discount is now reduced to about 19 paise on petrol and 17 paise on diesel.

Petrol is currently sold at Rs 76.43 per liter in Delhi, while a liter of diesel costs Rs 67.93.

Exactly a month after the shock demonetization of old 500 and 1,000 rupee notes, the government had on December 8, 2016, announced a raft of measures, including discounts on online payments for insurance policies, rail tickets and highway toll charges as the government looked to promote digital cash post note ban.

"As a part of these initiatives, to promote cashless transactions Government of India has announced to incentivize petrol/diesel customers transacting at PSU petrol pumps by way of 0.75 percent discount when a customer uses Debit/Credit Cards, Mobile Wallets, and Prepaid Loyalty Cards," it was announced then.