Revenue loss in RTA transactions due to demonetization

Hyderabad December 8 : As we know that, soon after Nov 8th mid-night, the old 500 and 1000 notes got banned by Central Govt of India. Following that, there has been struggle over money. And slowly Cashless transaction started to rise and today it became the must and should process over here in order to survive ourselves.

Not only personal needs, even the things related professional had too effected by Demonetization. Coming to thee topic of RTA, it appears to be a considerable drop in the number of users and transactions and in result which provided e-Seva & me-Seva centres here over today.

The officials revealed that the State Road Transport Authority has suffered a 28.18 pc(payment in crores) loss in revenue this year.

The Deputy Transport commissioner said that, "For financial year 2014-15, we earned Rs.29.80 crore in payments for vehicle registration and other services provided online. But it dropped down to Rs.21.40 crore this year".

After the announcement of demonetization on November, RTA has seen a drop in the number of transactions conducted on its portal.

"We had growth rate of Rs. 22.30 pc in the number of transactions on the portal till October. Then the growth rate dropped to below 10 pc since then," he said.

The RTA introduced cashless system for all its services On Aug 2 this year. Then, the users fill the applications through online, which is available at Me-seva centers. Hence the system had defects initially. It gets the loss of Rs 8.40 crore to low volume of vehicle sales.

"The number of vehicle registrations has slowed down, as people were not purchasing the vehicles. These are the reasons for loss of revenue", explained deputy commissioner.

The Revenue from one time vehicle life tax has also seen a 3.27 pc drop. "In 2014-15 we collected Rs. 95.37 crore as one time life tax in vehicles but this time it was Rs. 92.34 crore," he said.