India’s Finance Minister, Pranab Mukherjee has asked the commercial banks in the country to scrap charges on electronic transactions.

While addressing the chief executives of public sector banks and financial institutions, he also asked to minimize the use of cash as much as possible. He pointed out that the farmers should be able to make purchases through using Kissan Credit Cards (KCC)- cum debit cards and avoid the sue of cash.

He praised Oriental Bank of Commerce for removing charges on NEFT and RTGS transactions upto Rs. 1 lakh. “I am confident that all the public sector banks would follow this excellent initiative. I would also urge upon the Reserve Bank of India to proactively work on this front and to see that all electronic banking transactions are possible without any charges being levied,” he said.

He pointed the banks to the five point agenda in the sector that includes financial inclusion for passing of the benefits, KCC for all farmers, implementation of education loans, importance of RRBs in issuance of credit cards, and role of state owned banks in promoting electronic transfers.