India to offer incentives on digital transactions

Finance Minister Arun Jaitley on Thursday announced incentives ranging from 0.75% to 10% on retail purchase of products like petrol, diesel and insurance products from state-run companies, to encourage cashless transactions. Prime Minister Narendra Modi decided to scrap 500-rupee and 1,000-rupee banknotes on November 8 in a bid to flush out cash earned through illegal activities, or earned legally but never disclosed. Since coming to power in 2014, Modi has pledged to crack down on so-called black money with a series of new measures, including 10-year jail terms for evaders.