New Delhi, Dec 13 (IANS): As part of initiatives to promote cashless transactions, state-run Indian Oil Corp (IOC) on Monday announced a discount of 0.75 per cent on petrol and diesel purchases made using digital payment, effective midnight.

"The amount of discount will be credited to customer's account by way of cash back within maximum three working days of the transaction," IOC said in a release here.

"As a part of these initiatives, to promote cashless transactions Government of India has announced to incentivise petrol/diesel customers transacting at PSU petrol pumps by way of 0.75 per cent discount when a customer uses Debit/Credit Cards, Mobile Wallets and Prepaid Loyalty Cards," the statement said.

This discount on payments will translate from Tuesday into a rebate of 49 paisa a litre on petrol, currently sold at Rs 66.10 per litre in Delhi and 41 paisa on diesel, which costs Rs 54.57, with corresponding reduction in other states.

Last week, the government had announced a raft of measures including discounts on online payments for insurance policies, rail tickets and highway toll charges in order to promote digital cash post the demonetisation of high-value currency on November 8.