In order to eliminate corruption from our country prime minister Narender Modi took a step to outward 500rs and 1000rs notes and replace it with a digital mode of payments. Our PM Modi has roped in with High profile business tycoon Nandan Nilekani to make India go cashless.
Nandan Nilekani is a member of the opposition party i.e., Indian National Congress has joined a committee and is working on it to increase the number of people to adopt digital payments especially in rural areas because in rural areas the transactions are done through hard currencies only. This is not the first project for Nandan Nilekani, he has tackled a national project of Aadhar Unique Identity system where each Indian has got unique identity based on the biometric.
Nilekani with the help of his 13 member committee is working out to make digital payment very common in places where smartphones and internet access is lacking.He said in an interview after the first meeting of his committee “India has the underlying digital financial architecture in place to get this going,”he added. “How quickly the government can reach everyone is a question of execution and speed.”
Increase use Of Digital Wallets
With the startups of Paytm, Mobikwik, and Freecharge they have been getting relieve for smartPhone users and the Committee is focusing on getting more merchants to accept this mode of payment and getting POS devices. Nilekani says getting digital payments is achievable in weeks. As there was the interface in major banks in April which made sending money to anybody in the country as easy as sending a text message.
They are about 250 million smartphone users, 350 million people have on the feature phone and 350 million do not have the phone at all was said by Nilekani. He and his committee will meet up this to solve to issue where there is less access or no access to the internet or smartphones.
Impact On Rural Area
They were a huge impact of demonetization in rural areas because transactions for everything from daily grocery to selling clothes and also for weddings was done on cash notes. Due to the ban on currency, there was the drastic downfall in sales of many things.
Srikanth Nadhamuni said “There is no economic activity, transactions are at a standstill,” who is chief executive officer of Incubator Khosla Labs.
Achieving Big Target
They have been huge growth in digital payment in the country after the demonetization and it is expected to cover almost half of the population by the end of 2020.