Future Action Plan for implementation of Digital Payments in Industries
No. CLE-HO/POL/DIPP/16-17
Dec. 26, 2016
Members of the Council
Sub : Future Action Plan for implementation of Digital Payments in Industries – Directive from Department of Industrial Policy and Promotion (DIPP), Govt. of India
As you are kindly aware, subsequent to the demonetization initiative (wherein the old Rs.500/- and Rs.1000/- were taken out of legal tender), the Government is aggressively pushing for cashless/digital payments .
As per feedback of members, CLE had submitted a representation to DIPP highlighting the problems faced by the industry on account of demonetization, including problems in payment of wages, raw material procurement etc.,
CLE has today received a copy of a communication No. 21/1/2016- O & M dated 23.12.2016 (copy enclosed) from Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Govt. of India informing about the following timelines for achieving digital payments in leather industry.
| 1. | Payment to labourers hired directly | 27.12.2016 to get Debit Card enabled bank accounts for all workers | Salary of December for all workers to be paid on January 1, 2017 only through bank accounts | |
| 2. | Payment to labourers hired through contractors | 50% such labourers to have accounts by 27.12.2016 and they get December salary only through bank | Remaining labourers to have accounts by21.01.2017 | 90% salaries Only through bank accounts by 31.01.2017 |
| 3. | Payments to small time suppliers of raw material and transporters | 50% by 15.01.2017 | 75% by 15.02.2017 | 90% by 15.03.2017 |
| 4. | Removal of Convenience Fees or Surcharge, if any, for Digital Payments | 50% industry by 15.01.2017 | 75% by 15.02.2017 | 90% by 15.03.2017 |
| 5. | Awareness drive to sensitize people about Digital Payments | -- | -- | -- |
| 6. | Dealer to Consumer sales transaction only digitally | 10% by 15.01.2017 | 20% by 15.01.2017 | 30% by 31.03.2017 |
From the above, it may be noted that Serial Nos. 1, 2, 3 and 6 pertain to implementation by the leather and footwear industry. Hence, all members may kindly note and do the needful by approaching their bankers. Members may also kindly provide feedback on the difficulties faced in implementing the above action plan so that we can accordingly inform the Government.
Thanks and regards
Ramesh Kumar
Executive Director
COUNCIL FOR LEATHER EXPORTS