Towards cashless or less cash society

K Vaiphei *

People came to bank to deposit Rs 500 and Rs 1000 notes on November 10 2016 :: Pix - Shankar Khangembam

8th November 2016 is a landmark in the economic history of India. This is the day on which demonetisation of Rs 500 and Rs 1000 currency notes by Hon’ble Prime Minister of India Narendra Modi were announced. The announcement was so sudden and kept people unprepared for that some media termed it a surgical strike on black money/Indian currency.

The two currency notes ceased to be legal tender from 8th midnight, though they were allowed use in some selected oulets and institutions like petrol pumps, hospitals, railway counters etc. We will remember this day and continue to pass on the story to generations to come.

It will be difficult to forget, primarily not because of the stated objectives of the demonetisation move but mainly because of the sudden jerk we received and difficulties we faced in the form of long queues in front of ATMs, banks, closed ATMs, withdrawal limits, frequent changes in rules and confusion, seeking change for Rs 2000 notes, very limited availability of small denomination notes, wasting precious time etc.

Tackling black money, terrorism, cutting cost, digital economy, bringing transparency etc are the arguments in favour of demonetisation. The objectives are good and impact is large.

However, the biggest argument against demonetisation is its implementation. It has been found to be poorly , implemented causing sufferings and inconveniences to many. The Supreme Court, the highest institution of justice took notice of these sufferings and sought explanation from the Central Government from time to time.

Poor implementation gives grounds to the opposition parties and many citizens to raise their voices against it and asked even for its roll back. However, as of now, and likely to be forever, the government is very clear and stood firm on its demonetisation decision saying NO ROLL BACK!

The government, at present, is giving its best efforts in making Indian economy CASH-LESS or LESS CASH to achieve its ultimate objectives of demonetisation mentioned above. Available Banking and Mobile technology is greatly helping in shaping the policy for cashless or less cash society.

The government has already taken various steps in this regard. To mention some:

o Incentives for transaction through Debit/Credit/Purchase cards in Petrol Pumps, Railway Stations etc.

o GOI to provide 02 POS Machines each for 1 Lakh villages through NABARD

o Mandatory opening of accounts for tea garden workers who were so far paid their weekly or fortnightly wages in cash were undertaken by District Administration, NABARD, Banks and Tea Garden Management, in a mission mode especially in Assam. Simplified account opening under Pradhan Mantri Jan Dhan Jojaya (PMJDY) was a handy tool for mass opening of accounts in the tea gardens.

o Appointment of more Customer Service Points (CSPs) by Banks

o Ordinance for payment of salaries of workers of Government departments through cheques and electronic mode.

The NEXT BIG STEP the Government can take to further hasten the process of CASH-LESS or LESS-CASH economy is targeting and covering selected sectors with Point of Sales (POS) in a mission mode within a time frame. The following are suggested

o Start with all licensed business establishments and shops. These are the points/places where the mass spend major portion of their incomes.

o Subsidise POS machines for those who apply for them within a time frame set by government.

o For meeting required subsidy amount and training, create a special Fund from the proceeds of Demonetisation Exercise which can be parked with MUDRA. The fund can be came named Digital India Fund or Less-Cash India Fund etc.

o The Fund can be implemented as Credit Linked subsidy scheme for those who do not have capital for the POS and want to avail loan. For others who have capital, only subsidy can be availed.

o Henceforth make POS machine mandatory for issuing trade licence

o Short duration massive Trainings and awareness in POS handling for applicants who required

Covering licensed traders and business establishments with POS machines would be a great step in achieving less- cash or cash-less economy. We look forward to seeing soon people swiping debit/credit cards for tamul, biddi, rajnigandha, Pan, cigarette, bagpiper, Old Monk, beer, Samosa, mineral water, chocolates, Dal, Sugar, tea leave, medicine etc in small and big business establishments.

Next targets can be taxi, auto drivers, vegetable, fish vendors etc,.

Whether we are comfortable or not, we are moving towards cashless society and or Less cash Society and there is no reverse gear for this unless a something beyond human control to stop this move occurs.

Welcome Digital India! Welcome Cash-less And Less-cash India!