More than 600 million Indians don't have cards. So how can the country ban cash?

[ashok321]

Modi turns to old tricks as cash experiment hurts India's growth
Rural India’s support is important if Modi is to win elections in agrarian states including Uttar Pradesh and Punjab next year.


Biggest scam, outlandish, like an apple pie: 10 points by Chidambaram on cash ban
Taking a dig at government's cashless push, Chidambaram said, "Goal post is shifting, it is no longer about black money, now its about cashless economy."

Demonetisation: MGNREGA hires down 23% in Nov

Note ban: Fruit, veggie traders plan to shutter shops

 

[Shajida Khan]

Are you sure the camel going to well is a proper saying. How will a camel drink from a well ?
Rest of your post i agree with. Indians need a kick start to try anything new.

Proverbs are never logical but then let it be donkey if that makes you happy.

 

[randomradio]

The mainstream media makes up stories and the only ones taken on a ride are the PDF Chinese. How typical.

http://www.thehindu.com/business/In...ank-account-Labour-Bureau/article15004072.ece
Almost every household in the country is a part of the banking system, mainly due to government’s financial inclusion plans, the latest Labour Bureau data showed.

Around 94.4 per cent households had a saving bank accounts in 2015-16, results of the Fifth Annual Employment-Unemployment Survey revealed. The figure was much higher than the official figure (58.7 per cent) of households with saving bank accounts in India, as per Census 2011.

While 93.4 per cent households in rural areas had a bank account, 96.8 houses had a savings bank account in the urban parts. In Daman and Diu and Lakshwadeep, all the households surveyed had saving bank accounts. Chandigarh had 99 per cent households with saving bank accounts whereas households in Nagaland had the least, 79.2 per cent, access to the banking system.

North-eastern states
Banking penetration was particularly low in north-eastern states – Manipur (82.8 per cent), Meghalaya (85.1 per cent) and Arunachal Pradesh (88.9 per cent). This was followed by a comparatively low coverage in West Bengal (90.4 per cent), Karnataka (91.6 per cent) and Mizoram (91.7 per cent).

“Government of India’s recent initiatives to enhance the financial inclusion and accessibility of financial institutions such as Pradhan Mantri Jan Dhan Yojana and Pradhan Mantri Micro Units Development and Refinance Agency (Mudra) Yojana may have translated into entering of more population in the ambit of formal financial activities,” according to the report.

Labour Minister Bandaru Dattatreya said during his speech during the BRICS Labour conference held here in Delhi that 24 crore bank accounts have been opened under the Jan Dhan Yojana scheme.

Jan Dhan Yojana
“The huge jump in saving bank accounts is mainly due to the Jan Dhan Yojana,” Madan Sabnavis, chief economist at CARE Ratings told The Hindu. “It’s a positive step necessary for financial inclusion. However, we need to ensure that households use their bank accounts as well.”

Centre had rolled out the Jan Dhan Yojana in August 2014 aimed to provide banking coverage to all households in India.

 

[Place Of Space]

Swipe your face when you need to pay the bills.

 

[Shajida Khan]

He asked them for a free bank account if you listen good or be ready to pay for ignoring him.

Problem is poor people dont even know how to use card.

About time they learn how to use the card. They will not learn otherwise. They are poor, may be uneducated but certainly not ignorant.

Most govt agency ask for cash.

Most of them will accept demand draft as well. Also a lot of them are online and can be paid using debit cards.

Most toll road ask for cash there is no card.

Most of the Indians travel by bus or other public transports and they do not have to pay tolls directly. Those traveling by car regularly can pay using FASTag or PayTM.

Most small vandor want cash.

In denominations of Rs 20 to 50, which are very much available. Also about time they start using cards or mobile and Indian entrpenures innovate low cost payment fintech.

But cash is not in market all of it is gone to richest of rich.

Even better. In the next round when cash is totally removed, a lot of black money will become soil.

 

[GodToons]

Bullshit article, assuming that all 125Cr Indian population needs bank account and cards without considering that it is earning person who needs it most.

Last jandhan scheme issued 40Cr unique cards into banking system, assuming for 22Cr family. based on Indian census, close to 20% of indian population is under 18Y which anyway needs guardianship to operate account.

This article is best example what is wrong with Indian education which gives ample knowledge without imparting common sense and wisdom.

 

[duhastmish]

About time they learn how to use the card. They will not learn otherwise. They are poor, may be uneducated but certainly not ignorant.


Most of them will accept demand draft as well. Also a lot of them are online and can be paid using debit cards.


Most of the Indians travel by bus or other public transports and they do not have to pay tolls directly. Those traveling by car regularly can pay using FASTag or PayTM.


In denominations of Rs 20 to 50, which are very much available. Also about time they start using cards or mobile and Indian entrpenures innovate low cost payment fintech.


Even better. In the next round when cash is totally removed, a lot of black money will become soil.

Haha

You are just a faker a poser a blind bhakt. No time for people like you.

Indiais another seria in 2 years.

 

[my2cents]

It's just politics. Playing his "tough image" and making people's lives miserable actually makes him more popular among the right wing segment.

Your logic does not make sense. It is not about right or left but what is right for the country. Even business people with lots of black money are supporting this move because it is the system which made them hide money. They are parting with their money for the first time when a normal tax payer has been doing it for years.

 

[randomradio]

Payments banking has started proliferating. Your phone number is your bank account number.

http://www.thehindu.com/business/all-you-need-to-know-about-payment-banks/article7561353.ece
New stripped-down type of banks, which are expected to reach customers mainly through their mobile phones rather than traditional bank branches.

http://www.airtel.in/about-bharti/m...ounces+additional+benefit+on+savings+deposits

http://www.vodafone.in/discover/get-started/mpesa

A number of new banking companies will be setup.

Then there's smartphone apps coming up too.
https://www.phonepe.com/en/index.html

You can transfer funds to other people using your mobile phone.

 

[fallstuff]

It's the opposite man.

No guy who can't think it through can become the PM of a nation of 1.3 billion people. It takes IQ to become a popular politician with cult following.

And Modi is not alone. He has advisers, technocrats and academics helping him out!

So none of them thought it through? Unlikely.

It's 10% "honorable" intentions and 90% politics, as I said before.

Modi is sharp in playing politics, but in this instance I think he shot himself in the foot. I will give you the Bush/Neocon Iraq invasion analogy in this regard. The neocons are not dumb people, but they were so high on their big idea, they just didn't think how the whole idea could go wrong a thousand ways. The Iraqis were never ready for the kind of change they were forced through.

Half the Indian population is just not in a position to be in cashless economy, even the other half will face major inconvenience in their everyday life.

There is no easy way to deal with corruption, its a gradual process, there is no magic bullet or pill. The corrupted folks will just evolve, and adapt to the new system as the Indians found out how all the new 2,000 Rupee big bills found their way to the rich and powerful folks first. Modi grossly underestimated the power of the dark side !!!

There is this proverb,

" The path to hell is paved with good intentions."

 

[Trichy]

One thing I don't understand form my fellow Indians leave the rest, if we think how poor or uneducated people use EVM then we still use the old paper for election.

we think how poor or uneducated people will adapt to mobile phones? We never become the world's 2nd or 3rd largest market and users?

• Telephone subscribers (wireless and landline):1058.01 million (May 2016)
• Land lines: 24.81 million (May 2016)
• Cell phones: 1033.20 million (May 2016)
• Monthly cell phone addition: -1.1 million (May 2016)
• Teledensity: 82.82% (May 2016)

we think how poor or uneducated people will adapt to computers in later 1980's then how come we become world's one off the top exporters in it?

we think how poor or uneducated people will adapt the green and white revolution in early 1960's, then how we become self sufficient in these?

Date goes to space technology, electricity, railway, roadways, industry, online marketing, 2&4 wheelers production and usage, GDP with to world's 7th largest, and the list goes on!

We must understand and adapt the new things it's already in our culture to evolve and expand to dominate in the areas. Even we go for cashless with 8-12℅ it's a great achievement.

And telling 60cr people who don't have a bank account is complete crap, because why a infant or a person who is under 18 years need it in India? They r the majority with 39-41℅ in Indian population. One account to a family is more than enough.

So how we adapt and evolve the mobile technology into our day to day life, we came above this thing in few years to a decade for sure. Jai Hind.

 

[jaunty]

Modi is sharp in playing politics, but in this instance I think he shot himself in the foot. I will give you the Bush/Neocon Iraq invasion analogy in this regard. The neocons are not dumb people, but they were so high on their big idea, they just didn't think how the whole idea could go wrong a thousand ways. The Iraqis were never ready for the kind of change they were forced through.

Half the Indian population is just not in a position to be in cashless economy, even the other half will face major inconvenience in their everyday life.

There is no easy way to deal with corruption, its a gradual process, there is no magic bullet or pill. The corrupted folks will just evolve, and adapt to the new system as the Indians found out how all the new 2,000 Rupee big bills found their way to the rich and powerful folks first. Modi grossly underestimated the power of the dark side !!!

There is this proverb,

" The path to hell is paved with good intentions."

Good post. This whole cashless thingy wasn't a part of their original plan. It is an afterthought. There was no mention of it in Modi's original speech on Nov 8. There was hardly any talk about cashless economy until late Nov. I observed it in one of my posts here couple of weeks back. Once the govt realized that their original stated objectives had failed, and nearly all 500/1000 notes would come back to the system (meaning no windfall), they were forced find a face saving measure. You are right. There is no magic therapy to cure corruption overnight. Once there is enough liquidity in the economy, everything will go back to how it was before.

If Modi was serious about ending corruption, he should have started it from his own house, that is politics specifically political donation and campaign financing. Make it cashless and transparent. All honest Indians regardless of their party affiliations would have supported him. But there has been a deafening silence on that and we all know why.

 

[randomradio]

Good post. This whole cashless thingy wasn't a part of their original plan. It is an afterthought. There was no mention of it in Modi's original speech on Nov 8. There was hardly any talk about cashless economy until late Nov. I observed it in one of my posts here couple of weeks back. Once the govt realized that their original stated objectives had failed, and nearly all 500/1000 notes would come back to the system (meaning no windfall), they were forced find a face saving measure. You are right. There is no magic therapy to cure corruption overnight. Once there is enough liquidity in the economy, everything will go back to how it was before.

If Modi was serious about ending corruption, he should have started it from his own house, that is politics specifically political donation and campaign financing. Make it cashless and transparent. All honest Indians regardless of their party affiliations would have supported him. But there has been a deafening silence on that and we all know why.

This is where you are wrong.

The whole cashless exercise was started as soon as Modi came to power. RBI initiated the Mobile Payments Banking and companies had to start 18 months after they applied, which has begun now.

http://www.livemint.com/Industry/BnYggWC3TpU36R1zSQaynJ/RBI-issues-11-payments-bank-licences.html

This cashless/less-cash thing was mentioned by Modi only recently, but before this it was part of the Digital India program.

Here's the official website.
http://digitalindia.gov.in/

More details
http://www.straitstimes.com/business/modis-digital-india-push-wins-94-billion-in-investment-pledges
The pledged spending will bolster the government's plan to commit US$18 billion on its Digital India program to expand Internet access to rural areas and offer government services online.

http://www.dnaindia.com/money/repor...he-indian-economy-ravi-shankar-prasad-2195813
Digital India campaign will add $1 trillion to the Indian economy in the next 5-6 years.

http://retail.economictimes.indiati...0-billion-in-state-bids-across-india/55717678

 

[jaunty]

This is where you are wrong.

The whole cashless exercise was started as soon as Modi came to power. RBI initiated the Mobile Payments Banking and companies had to start 18 months after they applied, which has begun now.

http://www.livemint.com/Industry/BnYggWC3TpU36R1zSQaynJ/RBI-issues-11-payments-bank-licences.html

This cashless/less-cash thing was mentioned by Modi only recently, but before this it was part of the Digital India program.

You are conflating two separate issues (demonitization and electronic transactions) exactly how the govt wants you to. Secondly you are giving undue credit to Modi for payment banks. Allow me to explain how.

Payment bank :On 23 September 2013, Committee on Comprehensive Financial Services for Small Businesses and Low Income Households, headed by Nachiket Mor, was formed by the RBI.[2] On 7 January 2014, the Nachiket Mor committee submitted its final report.[3]Among its various recommendations, it recommended the formation of a new category of bank called payments bank.[4] On 17 July 2014, the RBI released the draft guidelines for payment banks, seeking comments for interested entities and the general public.[5]On 27 November, RBI released the final guidelines for payment banks.[6]

So no it was not Modi government that initiated payment banks. In any case, it is in RBI's domain, not govt's.


Secondly, no one is against an increase in electronic transactions. It is a gradual process. Just a few years ago there was almost negligible electronic transactions. In the last 5-6 years, that number has grown to about 2% of total transactions (NPCI was founded in 2008) and it will continue to grow as the economy grows. China, who's about 15-20 years ahead of us in the development ladder has about 10% electronic transactions. The US with a 60 years of history of credit cards has about 45% electronic transactions. We will also gradually get there. However it was not an objective of demonitization and rightly so. If it was such a big thing, Mr. Modi would have mentioned it at least once in his historic 8th Nov speech. He did not. In fact, no prominent govt minister did until RBI released its deposit data on Nov 22. After that there was a cabinet meeting and perhaps the "face-saving" tactic was adopted. As I said before, it is absolutely an afterthought. You don't need to demonitize 86% of the currencies to encourage digital payments. The govt is trying to link those two due to two reasons, 1) severe cash crunch, 2) as a defection tactic from the core objectives.

 

[randomradio]

You are conflating two separate issues (demonitization and electronic transactions) exactly how the govt wants you to, Secondly you are giving undue credit to Modi for payment banks. Allow me to explain how.

Payment bank :On 23 September 2013, Committee on Comprehensive Financial Services for Small Businesses and Low Income Households, headed by Nachiket Mor, was formed by the RBI.[2] On 7 January 2014, the Nachiket Mor committee submitted its final report.[3]Among its various recommendations, it recommended the formation of a new category of bank called payments bank.[4] On 17 July 2014, the RBI released the draft guidelines for payment banks, seeking comments for interested entities and the general public.[5]On 27 November, RBI released the final guidelines for payment banks.[6]

So no it was not Modi government that initiated payment banks. In any case, it is in RBI's domain, not govt's.


Secondly, no one is against an increase in electronic transactions. It is a gradual process. Just a few years ago there was almost negligible electronic transactions. In the last 5-6 years, that number has increased to about 2% of total transactions (NPCI was founded in 2008) and it will continue to grow as the economy grows. China, who's about 15-20 years ahead of us in the development ladder has about 10% electronic transactions. We will also gradually get there. However it was not an objective of demonitization and rightly so. If it was such a big thing, Mr. Modi would have mentioned it at least once in his historic 8th Nov speech. He did not. In fact, no prominent govt minister did until RBI released its deposit data on Nov 22. After that there was a cabinet meeting and perhaps the "face-saving" tactic was adopted. As I said before, it is absolutely an afterthought. You don't need to demonitize 86% of the currencies to encourage digital payments. The govt is trying to link those two due to two reasons, 1) severe cash crunch, 2) as a defection tactic from the core objectives.

You do realize that just like Payment Banking, even demonetization was a move done by the RBI. Any such move in finance is done by the RBI. Modi is merely the face of demonetization, the people who planned it were civil servants, not politicians.

Vodafone's M-Pesa started all the way back in 2013.

You are right about the mismatch between the govt's demonetization and the increased advertisement of digital payments, they should have made available the Payment Banking system a year earlier. But I don't see why they are not interrelated. Basically, RBI planned demonetization and payment banking. Where they failed was advertising payment banking, which fell on Modi's shoulders.

Also I wouldn't compare us with China, it is better to compare India's new schemes to Kenya where more than 70% of the population uses digital currency because of payment banks.

http://voices.nationalgeographic.co...w-kenya-has-beaten-the-world-in-mobile-money/

http://www.forbes.com/sites/danielr...-the-global-mobile-money-market/#33cbdfc23f5d