Explanation:

RBI appointed committee on digital payments, headed by Nandan Nilekani, has made recommendations for strengthening digital payments ecosystem in India.

Recommendations:

• Removal of transaction charges: on digital payments made to government, there should be no convenience fee on consumers for digital payments made to state-run entities and central departments. Hence, statement 1 is NOT correct.
• Merchant Discount Rates (MDR) pricing structure: 15 basis points (100 bps = 1% point) cut on the interchange rate on card payments which is borne by the merchants.
• Removal of existing 18% import duty on POS (point of sale) machines for a period of three years. Hence, statement 2 is correct.
• Reduce the goods and services tax (GST) on digital transactions so that the acceptance of digital payments can be improved among the customers.
• Mechanism to monitor the digital payment systems:
• Digital financial inclusion index so that progress in an area can be measured along a common scale, indicating the evolution of the users and steps taken for correcting the imbalance. Hence, statement 3 is correct.
• Aggregated information based on blocks and PIN codes, must be available to all players on a monthly basis.
• Reduce the overall cost to the consumers such as KYC (Know your customer) process at multiple stages of the transaction and service charges for digital payments.
• Setting up an Acceptance development fund: which will be used for developing new merchants in poorly served areas.