In what can be said to be PM Narendra Modi's final digital transaction push before 2019 Lok Sabha elections, the central government may give a big relief to small traders. The government may end digital transaction charges to give a last-minute push to its flagship Digital India mission.

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Traders have to pay monthly transaction charges. On an average, they pay Rs 600 to Rs 1200 on a POS machine. Zee Business has an exclusive information that the government is planning to create a fund  to pay digital charges to banks.  

To promote digital transactions, the government had lowered excise duty on items used for the manufacture of POS (Point of Sale) machines during demonetisation. The government had given a 12.5% excise duty relief and 4% special duty relief. This had led to a huge demand of POS machines. However, the relief was applicable only till March 2017. 

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Amid din over demonetisation in the Lok Sabha, Finance Minister Arun Jaitley had announced excise duty and SD cuts on items used for manufacture of POS instrument.

POS machine is a hand-held device, which can be operated easily. Traders use this machine for getting payments from customers through debit and credit cards.

(Report by Prakash Priyadarshi)