Fayaz Kabli / Reuters
Vivek Prakash / Reuters
Other banking operations will continue to take place.
Mukesh Gupta / Reuters
"We strongly object levy of abnormal charges by banks."
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"Money doesn't talk, it swears," said Bob Dylan. For some that is exactly what it did at the end of 2016. Stockpiles of demonetised currency notes had to be brought to the bank and deposited. The "sur...
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Both cash and prepaid cards ride on the convenience quotient only. However, the "secured" element of the transaction also needs to be given equal consideration -- the Paris attack and the Delhi heist should serve as a wakeup call to all stakeholders. Both avenues will have a 9/11 moment soon and legislation is bound to come in to control their usage. The Finance Ministry has already issued a paper talking about tax incentives for merchants accepting digital payments.
In stark contrast to the US or the UK where 50-70% of retail payments are electronic, in India that number is approximately 3%. Banks have made a conscious effort to encourage the adoption of electronic payments, but old habits die hard, and cash continues to remain king. So what can be done to change the pace of adoption? Below are three high-level areas, including some carrots and sticks, which I believe will move the needle in India.