The Goa government on Thursday withdrew the circular that asked business establishments to go cashless within 10 days. The Bharatiya Janata Party-ruled state issued another circular, saying, “It is an option and not compulsion to provide for electronic mode of payment.” The new circular states that the 10-day deadline will not be applicable.

Besides, Commercial Taxes Commissioner Dipak Bandekar has asked tax officer in charge of each ward to hold meetings and workshops along with bank officials to spread awareness among businessmen and traders. The tax officials will have to submit a report on the same by January 31, 2017. The government said the decision to withdraw the November 30 circular was taken after considering factors like need for training and the time required to configure electronic modes of payment.

The November 30 circular was issued days after Defence Minister and former state chief minister Manohar Parrikar had declared that Goa would support Prime Minister Narendra Modi’s demonetisation drive and be the first state to go cashless by December 31. Ever since the move to go cashless was initiated, there has been opposition from traders.

The state unit of the ruling BJP also voiced its reservations against the move. The resistance is perceived as the party’s reluctance to upset the business community before Assembly elections early next year. The circular caused a furore among traders, even as the commissioner had clarified that no punitive measures would be taken against them.

The matter reached the Goa State Human Rights Commission through a petition filed by lawyer and social activist Aires Rodrigues, who said such a switch would cause immense hardship to smaller establishments and those without credit/debit cards in a state.