In a steep step on put in real Prime Minister Narendra Modi’s dream for a moneyless India, nation’s foremost profitable & 3rd biggest retail chain – defence canteens, are becoming completely cashless starting March 1, 2018 around the country.
“The CSD and the unit run canteens under which have been demanded by the services to turn cashless from March 1st as they will make sale of goods only through plastic money.
The CSD consists of 1.2 crore direct customers in shape of serving and retired persons inlcuding their families and that hit a turnover of more than Rs.13,000 crore previous year. In the defense, orders were commanded by the adjutant general’s branch to csds that they should turn fully cashless beginning from March 1 and the domestic formations have been requested to sprawal the message amongst the serving & retired personnel. The local formations have given instructions to the retired personnel that they have to organize credit or debit cards by 1.3.2018 as the canteens are becoming rupeeless.
For military personnel, its simple to become cashless as all their personnel have their salaries in their respective bank accounts and hold debit cards by their concerned banks long time back. The retired soldiers and officers pensions are too disbursed via banks and they have also been provided the plastic cards.
The CSD has about 3,900 stores in the country from Ladakh in north to Andaman & Nicobar Islands. The CSD stores sell nearly 5,300 products on discounted rates as they have exemption from sales tax implied by the local state govt.s on the goods sold by them. Upon VAT started, state governments too exempted the CSD from them.
Purchasing a car from a CSD canteen, cost just INR ten lakh in a metro city showroom, can aid in saving at least Rupees 80,000-90,000 because of exemption on remittance of sales tax based on the model and brand of the vehicle. Last year, the CSD profits exceeded that of the Future Retail & Reliance Retail as it garnered Rs 236 cr. whereas other chains were far after it in terms of gains. The canteen transaction can be made only via smart cards. The demonetisation drive had also met a steep in sales of the CSD as several unit-run canteens had not have card swiping equipments and were transacting only via cash.