How India is moving cashless?

[V.Balasubramani]

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More are opting to cashless transactions.....


மொபைலில் கட்டணம் வசூல்: ஆட்டோ டிரைவர் அசத்தல்

பெரம்பலுார்: மொபைல் மூலம் கட்டணம் வசூலிக்கும், ஆட்டோ டிரைவரின் புதிய முயற்சி, பயணிகள் மத்தியில் வரவேற்பை பெற்றுள்ளது.

'ரூபாய் நோட்டுகள் செல்லாது' என, மத்திய அரசு நவ., 8ல் அறிவித்தது. இதையடுத்து, மக்களிடையே பணத் தட்டுப்பாடு அதிகரித்தது. குறிப்பாக, 100, 50, 20, 10 ரூபாய் நோட்டுகளுக்கு கடும் தட்டுப்பாடு நிலவி வருகிறது. புதிய, 2,000 ரூபாய் நோட்டுகளுடன், பஸ் மற்றும் ஆட்டோ பயணிகள், சில்லரை தட்டுப்பாட்டால் சிரமப்பட்டுவருகின்றனர்.
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'ரூபாய் நோட்டுகள் செல்லாது' என, மத்திய அரசு அறிவித்ததை தொடர்ந்து, இந்த புதிய உத்தியை கையாண்டுள்ளேன். இது, தொடக்கத்தில் சிரமமாக இருந்தாலும், தற்போது பயணிகள், தங்களிடம் பணம் மற்றும் சில்லரை இல்லாவிட்டாலும், நம்பிக்கையுடன் என் ஆட்டோவை தேடி வருகின்றனர். அவர்கள் சொல்லும் இடத்துக்கு சென்று, இறக்கிவிட்டு, ஆன்லைன் மூலம் என் வாடகையை பெற்று கொள்வதால், நேரம் வீணாவது தடுக்கப்படுவதோடு, எவ்வித சில்லரை பிரச்னைகளும் ஏற்படவில்லை. இவ்வாறு அவர் கூறினார்.

ஆட்டோவில் பயணித்த மல்லிகா என்ற பெண் கூறுகையில், ''இவரது இந்த புதிய முயற்சி வியப்பில் ஆழ்த்துவதுடன், சில்லரை தட்டுப்பாடு பிரச்னையிலிருந்து விடுவித்திருப்பது மகிழ்ச்சி அளித்துள்ளது,'' என்றார்.

Source: http://www.dinamalar.com/news_detail.asp?id=1665788

 

[prasad1]

KOLKATA: Rana Bhaumik, 32, and his 63-year-old mother, Manju, are on opposite sides of the digital divide that has been in focus ever since Prime Minister Narendra Modiannounced his demonetisation drive a month ago.

Rana is tech-savvy and at ease with the use of plastic money. He is also the man who designed the 'Digital India' logo last year.

Manju, a widow, can't remember when she last visited a bank. Her modest one-storey house at Hridaypur, near Barasat, where she lives alone, has a computer, but Manju has never switched it on. She has never used an ATM card, and is clueless about online banking. So far, it didn't matter because Rana, who is based in Delhi, sent her enough money every month through a friend. Today, both mother and son are grappling with the cash-crunch crisis precipitated by demonetisation.

"Since last month, Rana has been able to send just Rs 5,000. I have run out of cash and am surviving on groceries and vegetables bought on credit. I hope Rana is able to send me some money soon," Manju said.

In Delhi, her son is yet to think of a way to do so. "Every month I transfer the money to a friend's account and he passes on the cash to my mother. But with everyone finding it difficult to collect enough cash, I was hesitant to send more than Rs 5,000. It isn't enough and I don't know how I can send more since my mother has neither operated her account nor used an ATM card ever," said Rana.



Even the Rs 5,000 that Rana's friend passed on to his mother posed a problem initially — Rs 4,000 was in two bills of Rs 2,000, and change was hard to come by until a few neighbours and a local grocer offered help. "But over the last three weeks I have used up the money," said Manju.



Manju might have withdrawn money from the bank but waiting in a queue is not an option for the sexagenarian. The differences in the two generations' approach towards technology and its new manifestations are further laid bare by the fact that Manju doesn't know that her son created the logo for one of the central government's flagship initiatives. "He got an award last year. I am not sure why," she added.

But Manju isn't very keen to bridge the digital divide. She would rather move to Delhi to live with her son than go through the hassle. "At this age, I don't think I can do it. I would be too shaky and might mess it up," she said. Digital literacy is indeed very poor across the nation, Rana said. "Even in Delhi, the elderly are reluctant to use digital alternatives. We still have a long way to go," he added.



For now, he has asked his mother to be very judicious with cash. "I can't travel to Kolkata right now. I will have to transfer money to my friend's account again. But I can't pressure him to withdraw the cash and hand it over to my mother immediately," he said.

http://timesofindia.indiatimes.com/india/Cash-ban-lays-bare-Indias-digital-divide/articleshow/55903140.cms

 

[prasad1]

[FONT=&quot]Call it a demonetisation pain eased by a fine example of hospitality in the God’s Own Country. A 40-year-old foreigner ate at a restaurant here and didn’t pay because he was cashless. He was caught but let off because the eatery staff realised their guest had no other option.[/FONT]
[FONT=&quot]Khader Kunju, who has owned a restaurant here since 1989, said the incident occurred on Friday at the eatery near his joint. The tourist had asked if the restaurant accepted credit cards before ordering food but was told the facility wasn’t available.[/FONT]
[FONT=&quot]But he still ‘went and had lunch and after washing his hands, he ran away’, Kunju said.[/FONT]
[FONT=&quot]“He was caught by the hotel staff, but let off when he said he has money but there was no way he could withdraw it as the ATMs did not have cash.”[/FONT]
[FONT=&quot]Kunju said it was not a one-off incident of inconvenience faced by foreigners in Kerala after the central government announced on November 8 that it was spiking the country’s 86% -- Rs 500 and 1,000 notes -- of all currency in circulation.[/FONT]
[FONT=&quot]He said he also faced “similar situation as many of my clients are foreign tourists”.[/FONT]
[FONT=&quot]The restaurant owner narrated an incident how a group of French tourists -- four men and four women -- walked into his eatery and said they were very hungry and wanted to eat but had no cash.[/FONT]
[FONT=&quot]“They said they have credit cards, but since I don’t have swiping machine, I told them they can have food and pay later.”[/FONT]
[FONT=&quot]However, the generosity came with a cost.[/FONT]
[FONT=&quot]“Their total bill was Rs 1,600. A few days later the women came and paid their amount, but the men slipped away and have not paid as yet.”[/FONT]
[FONT=&quot]Kunju said he had never in his lifetime seen a situation like this.[/FONT]
[FONT=&quot]Koshy John, a tour guide, said he had a group of foreign tourists who landed on the day the demonetisation was announced.[/FONT]
[FONT=&quot]“The announcement proved a nightmare,” John said. He said his guests had exchanged their currencies hours before Prime Minister Narendra Modi made the announcement.[/FONT]
[FONT=&quot]And most of the time his guests spend “waiting in queues at banks”.[/FONT]
[FONT=&quot]“They left disappointed,” said John, adding there has been a drop in the number of foreign tourist arrivals.

http://www.hindustantimes.com/india...isappointed/story-vuI8QpElWfhVApCxB5LS7L.html[/FONT]

 

[prasad1]

The government’s decisive push in favour of incentivising digital payments underscores the need to plug a number of regulatory gaps governing products such as credit and debit cards, internet banking and mobile wallets. Two of the elements that could come under scrutiny are the arbitrariness in levying merchant charges, which add to the cost of every digital transaction, and the need to enforce the interoperability of digital tools such as wallets.

One of the underlying charges in the digital transactions space, the merchant discount rate (MDR) — that is charged to a merchant accepting card payments and sometimes passed on to the consumers — is decided by the banks themselves. While there is a cap prescribed by the Reserve Bank of India on the MDR applicable on debit cards, there is no limit on that for credit cards. Government officials indicated that there could be a move towards removing the arbitrariness of the merchant rates and aligning their estimation on the “work done” principle, the principle followed for determining the interconnection charges in the telecom sector.

“The transaction involving the digital transfer of money occurs essentially entails the creation of a ledger entry by the entities such as banks, and for that charges should be close to zero. This charge should be only based on the work done. Once you do that, these transactions will become almost free,” a senior government official said. The RBI in 2012 had rationalised the MDR for debit cards, capping it at 0.75 per cent for transaction values up to Rs 2,000 and at 1 per cent for transaction values above Rs 2,000. This was done in order to encourage all categories of merchants to deploy card acceptance infrastructure and also to facilitate acceptance of small value transactions through card payments.

However, in its Concept Paper on Card Acceptance Infrastructure issued in March 2016, the RBI noted that the MDR continues to act as a clear disincentive. “Though the regulatory policy on MDR (issued in September 2012) had indicated a cap on MDR, it is generally treated as floor, with the benefit of lower MDR not really accruing to smaller merchants. In certain segments like mutual funds, insurance, etc. a flat fee structure of charges has also been established by the industry,” the RBI noted in March. Hence, cash continues to be the predominant mode of payment as it appears to be “costless” in comparison to the visible costs associated with card and electronic payments.

http://indianexpress.com/article/bu...d-up-digital-payments-demonetisation-4419621/

 

[prasad1]

The mazdoor naka near Bhandup's Madhuban garden was once among the largest in the city, with nearly 500 construction labourers thronging here every morning. Masons, helpers, loaders, tile-polishers would spill onto the roads as early 7.30 am to strike a deal for a days' work with contractors.

Now there is just a trickle of 30 workers here. After demonetisation, job offers at this informal labour market have dried up. The currency crunch has meant contractors have no cash to pay daily-wagers. Incomes have dropped by 80-90% as a result. Mason's helpers who earned Rs 10,000-15,000 a month made just Rs 1000-Rs 2000 in November.


For many this means being down to one meal a day. Or doing without any food for a day or two each week. "From nake ke mazdoor, we have become nake ke bhikari," says Sanjay Kumar who has managed to get just 5 days' work in the three weeks since the note-ban. With a three year-old and five month-old at home, Kumar makes do with one meal a day. "Should I pay my rent, feed my children or feed myself ?" he asks. Lahu Suradkar whose wife is 3-months pregnant has spent several days without food. "I can only afford to spend Rs 20 a day to buy grains," he says. The langar at two local gurudwaras has become the ticket to survival for many like him.



Many here are migrants from Uttar Pradesh, Andhra Pradesh andrural Maharashtra. Some are heading back to their villages, like Sunil Ishwar from Aurangabad. "At least I will get farm work in the village. Here, I have not made even Rs 100 in ten days," he says. "I do bigari kaam and the rate is Rs 500 a day. Now we are getting Rs 100-150," said Maula Kagade from Solapur.

The local beer bar has become the home-grown note exchange counter for the workers who cannot afford to waste aday's wages standing in bank queues. But this comes at a price. "Most of us are being paid in old Rs 500 or Rs 1000 notes. The bar gives us new notes but only if we buy liquor worth Rs 150," says Suradkar. So for every Rs 500 he is paid in old notes, he can take homeRs 350.



Most of them do not have bank accounts as they don't carry identity papers. Those that do have too little money in them. When asked about the push for cashless payments, Naeem Shaikh shoots back, "I have no work. First ask the government to put money in my account. Then I will use a cheque to get it out."
http://timesofindia.indiatimes.com/india/Jobless-these-mazdoors-can-barely-get-one-meal-a-day/articleshow/55918186.cms

 

[prasad1]

 

[V.Balasubramani]

There is gradual transition......

India’s Digital Push Is A Momentous Mass Behavioural Change In Indian History

By Shashi Shekar

India may be on the cusp of one of the biggest mass behavioural changes in human history if the current push towards a digital and ‘less cash’ economy were to succeed. This drive poses unique challenges given India’s social diversity while opening up a once-in-a-generation opportunity to formalise large sections of the informal economy. It is, therefore, important to put the scale of this change and the pace at which the government aspires to effect it in perspective given that this is happening within the only billion-people democracy in the planet.

As of January 2016, China had over 1.3 billion mobile users with around 195 million of them expected to be using mobile phones to make retail payments by the end of 2016, an estimated penetration of about 38 per cent of all smartphone users according to one study. In 2015, mobile transactions in China accounted for about $235 billion of value, outracing the United States. By August this year, it is estimated, nearly two-thirds of all smartphone users in China, about 400 million of them, were already making payments using mobile phones.
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On this count, the digital drive stands starkly in contrast to the other milder attempts at behavioural change by Modi that saw little or no political resistance. But those who have observed Modi’s politics over the decades closely would remember that he is not a stranger to attempting mass behavioural change that is bound to provoke strong political resistance. Jyotigram, which was Modi’s boldest move at power reforms while as Chief Minister of Gujarat, saw the fiercest of protests. These protests came from within his own political fold.
The protests against what was then a significant change in how rural Gujarat consumed power, the parivar-affiliated farmers’ organisations were up in arms against Modi over his rationalising of power tariffs with the promise of delivering 24x7 power supply. While the political resistance from the farmer lobbies to Jyotigram lasted an entire electoral cycle, Modi stood firm and saw the change through, delivering on 24x7 power supply.

Riding on the back of demonetisation, the current push for going digital and cashless is markedly different. The political resistance, if any, at the moment is mostly from the elite and a few political parties that seem to have suffered gravely from demonetisation. The masses, on the other hand, while being mostly tolerant and accommodating of the pain inflicted by demonetisation, are making their own adjustments to adopt and adapt to “less cash” means of conducting transactions. Whether India will catch up with China in scale and volume of mobile transactions and how rapidly are open questions at this time, but we are witnessing the single-most definitive political intervention of the first term of Modi premiership, much like what Jyotigram was to his first full term as chief minister in Gujarat.

Beyond the world of politics, this digital push, as Indians across the social spectrum cope with the cash crunch resulting from demonetisation, makes for one of the biggest mass behavioural changes in modern times. There, perhaps, is a whole new chapter on behavioural economics waiting to be written on this “strong nudge” towards a formal economy riding on the back of a “sudden shock” to the cash-hungry informal economy.

Source: http://swarajyamag.com/politics/ind...ous-mass-behavioural-change-in-indian-history

 

[prasad1]

[h=1]Watch: Sugar Mill Workers Left High & Dry Post Note Ban[/h]CNN-News18's Runjhun Sharma travels to the poll bound state travels across Uttar Pradesh to analyze the impact of demonetisation on farmers, agriculture and small scale industries, here is an exclusive report from sugar mill industry in Mandwa.


http://www.news18.com/videos/india/watch-sugar-mill-workers-left-high-dry-post-note-ban-1322239.html

 

[prasad1]

Long queues outside banks in Delhi and the National Capital Region (NCR) were a common sight on Tuesday as they opened after a gap of three days.
The banks had been closed on second Saturday, Sunday and on Monday on account of Milad-un-Nabi.

As most of the banks hung "No Cash" boards within two-three hours of working, it was a great disappointment for those standing there for hours.
"Why there is no cash for people in the banks," an agitated Ram Krishna Mahto, who failed to withdraw cash after waiting in the line since 10 a.m, asked.
Pointing finger at bank personnel, he alleged: "They must be passing on money from the back door."
The ICICI Bank at Connaught Place was one of the many banks in the city which stopped distributing cash after going "cashless" within hours of opening.
Disappointed, some people started questioning the very rationale of the demonetisation decision, saying they were also feeling that banks were colluding with businessmen to change money, leaving the banks "dry".
People were also seen arguing with bank guards and other staff members after they were told that the cash was finished.
Security had to be beefed up at some banks to manage the crowd.
Similar scenes were seen outside most of the Delhi-NCR ATMs as well.
Meanwhile, National Organisation of Bank Workers' Vice President Ashwani Rana said that all bank employees were not indulging in wrong-doing and were performing their duties sincerely and with honesty.
Referring to news reports about the alleged nexus between some bank officials and unscrupulous elements for changing the demonetised currencies, Rana said, "Don't blame banks and all the 10 lakh bank employees and officers for the shameful act of just a few."
"We also request the government to conduct an investigation so that the guilty could be exposed and punished," Rana said.http://www.news18.com/news/india/long-queues-at-banks-atms-after-long-weekend-1322571.html

 

[prasad1]

Cash crunch: Students choose langars over roadside joints
[video]https://www.facebook.com/TimesofIndia/videos/10154882802922139/[/video]

 

[vgane]

We need to make digital transactions secure!! There should be audit of Rupay which is spearheading the digital drive!!

[h=1]None of mobile payment apps in India fully secure: Qualcomm[/h]December 13, 2016 22:50

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While the government is pushing for digital payments through mobile phones, chipset maker Qualcomm said that wallets and mobile banking applications in India are not using hardware level security which can make online transactions more secure.

"You will be surprised because most of the banking or wallet apps around the world dont use hardware security. They actually run completely in Android mode and users password can be stolen. Users use fingerprint which might be captured ... in India that is the case for most of all digital wallets and mobile banking apps," Qualcomm Senior Director Product Management S Y Choudhury said.

He said that even most famous digital payment application in India is not using hardware level security.

Reason we are saying that none of them is using it because we work with OEMs (original equipment makers), Choudhury said.

As per market research firm Strategy Analytics, Qualcomm leads mobile chipset market globally with 37 per cent share. -- PTI

http://news.rediff.com/commentary/2...ure-qualcomm/6df4c873f216f8c3ed4f7a650569607f

 

[yesmohan]

Mobile apps / SBI buddys...............all types of credit /ATM cards ................could not turn around a single stone in my area in Chennai suburban for the past three days after the visit of ferocious Vardha.
Even Rs. 2000 notes could not make any magic.
Real cashless transactions are being done a local "annachi" by just extending credit sales up to Rs.500/- to all the known faces by just noting down the names and mobile nos.

 

[prasad1]

Mobile apps / SBI buddys...............all types of credit /ATM cards ................could not turn around a single stone in my area in Chennai suburban for the past three days after the visit of ferocious Vardha.
Even Rs. 2000 notes could not make any magic.
Real cashless transactions are being done a local "annachi" by just extending credit sales up to Rs.500/- to all the known faces by just noting down the names and mobile nos.

You are right.
When there is no secure networks, going cashless is pure dream. It just shows the lack of foresight on the part of present administration, and some idealist.

 

[V.Balasubramani]

Nice incentive and motivation exercise..

Making your payments digitally? You may soon win Rs 1 crore in cash prize

NEW DELHI: In yet another move to incentivise consumers and merchants to go for digital payments, the government on Thursday launched two schemes that would give cash prizes to consumers and merchants who use digital modes of payments.

The two scheme, Lucky Grahak Yojana and the Digi-Dhan Vyapari Yojana, will be launched on December 25 and will be run by the National Payment Corporation of India for 100 days.

Announcing the scheme, NITI Aayog CEO Amitabh Kant said the two schemes will cost the government Rs 340 crore.

Under the lucky grahak yojana scheme, 15000 winners will be awarded daily for 100 days, starting from December 25, with Rs 1000 each. The scheme will also see a weekly draw for seven winners with a maximum award of Rs 100000.

Link: http://economictimes.indiatimes.com...ote-digital-payments/articleshow/55999857.cms

 

[prasad1]

http://www.news18.com/videos/india/firozabad-bangle-industry-hit-post-note-ban-1324043.html







[h=1]Firozabad Bangle Industry Hit Post Note Ban[/h] IndiaDecember 16, 2016, 7:26 pm
CNN-News18 correspondent Runjhun Sharma tells us how India's glass city has been shattered due demonetisation.
http://www.news18.com/videos/india/firozabad-bangle-industry-hit-post-note-ban-1324043.html

 

[prasad1]

At an interaction with the minister on Wednesday, issues such as “disruption of daily operations and harassment by authorities” were flagged.
The minister was also informed that payments to daily wage earners and contractual staff are being affected and in some cases withheld as most of them do not have bank accounts or means to switch to digital platforms.
The government’s push for cashless economy and digital payment options notwithstanding, 49.5% of the respondents said it is not possible for them to shift to cashless transactions immediately, while 33.6% said the transition would take over six months.
This is not the first time that an RSS affiliate has voiced concerns about demonetisation.http://www.hindustantimes.com/india...stries-hard/story-9oajUJ8qbIkIa1LbNf9biO.html

 

[V.Balasubramani]

Demonetisation: Traders push for Narendra Modi's cashless economy, chart roadmap

In a somewhat unexpected move, the trading community in India — the drivers of the country's cash-based economy — has decided to throw its full weight behind Prime Minister Narendra Modi's demonetisation move, by signalling its intention to turn India into a 'less cash' economy.


Responding to Modi’s clarion call for a ‘less cash economy’, the trading community — a section of the economy that thrives largely on cash transactions, and often bears the stigma of doing so to avoid paying taxes — has come up with a roadmap to give a push to digital transactions.

Keeping in mind the fact that in India 98 percent of small business units lack the ability to transact digitally, the Confederation of All India Traders (CAIT) has chalked out a ‘10-point plan’ with an aim to change the contours of traditional trade transaction methods — from cash payment to the digital platform.

Going by an NSSO survey, that shows that out of 5.77 crore small business units in the country, approximately 5.66 crore lack the ability to transact digitally, the plan to initiate small traders into digital transaction mode seems to be a humongous task. Add to this existing infrastructure bottlenecks, like lack of electricity and non-availability of internet, and the plan to go digital looks even more difficult.

After more than a month of demonetisation, most people, including the Supreme Court and the ruling government’s larger political family, the Rashtriya Swayamsevak Sangh, have raised questions over the faulty implementation of the move to root out black money. However, a large section of traders from across the country have come up with a plan to encourage cashless transactions, in effect giving a boost to demonetisation.

Source: http://www.firstpost.com/india/demonetisation-traders-push-for-narendra-modis-cashless-economy-chart-roadmap-
3156226.html

 

[prasad1]

Prime Minister Narendra Modi would be happy with 26-year-old Deepak Patil, an onion farmer from the village of Valwadi in Malegaon Taluka, about 300 km north of Mumbai, India's commercial capital. Patil, dressed in a grey jacket, over his white shirt and jeans, said he has a bank account, a cell phone, and receives payment for his onion produce in cheque.

But Patil, who sells his produce in Pimpalgaon, a market in India's onion heartland, Maharashtra–producing a third of all onions in the country–is not happy with demonetisation, or notebandi as it is colloquially called, and does not believe he can go cashless.

After November 9, 2016, when notes of Rs 500 and Rs 1,000–86% by value of Indian currency in circulation–were declared invalid, the government pushed for cashless transactions and digital payments. Patil–with access to banking and a cell phone–could, in theory, move to cashless transactions, but in reality there is no Internet access where he lives, the closest ATM is at least 25 km away, the closest nationalised bank 15 km away, and the government has currently placed restrictions on the district cooperative bank that hosts his account.

Nashik district, which contains Lasalgaon and Pimpalgaon, two of India's busiest onion markets, contributes 10.4% of Maharashtra's gross state domestic product, the highest of any agricultural district in the state, according to this 2014 Economic Survey report.

Patil's trials with the banking system, and the effect of demonetisation on the rural economy of Nashik, show how 800 million Indians, who depend on the rural economy, have been affected by the ban on notes over the last 35 days.

The Reserve Bank of India (RBI) barred the bank where Patil's account is–Nashik District Central Co-operative Bank (NDCC), and all other district central cooperative banks (DCCBs)–from exchanging defunct notes for Rs 100 notes or for new notes of Rs 500 and Rs 2,000.

Patil deposited Rs 21,000 by cheque in his NDCC account, hoping he could withdraw some money to pay labourers who work on his farm, repay lenders and buy groceries–transactions that still take place in cash."It takes more than two weeks for the cheque to be deposited," said Patil. "All we can do till then is wait." Even when the money was deposited in his account, it was no easy feat to withdraw it.


"I have to stand in line at the bank from 10 am to 6 pm, and all I get is one Rs 2,000 note," said Patil, who doesn't have any other bank account. He needed Rs 4,500 to pay labourers and Rs 4,000 for the mini truck that carries his produce to the market in Pimpalgaon, 100 km from his village. These days, he buys food on credit from the local grocer.

"Seventy percent of farmers in Nashik district have their accounts with NDCC, and many have no other account," said Shirish Kotwal, director and former chairman of NDCC.

The RBI feared that district banks, which are not under the RBI's purview, could be used to route black money back into the system, the Indian Express reported in December 2016. Seventy two hours after the announcement to demonetise Rs 500 and Rs 1,000 notes, DCCBs reported deposits of old currency eight times that of nationalised banks.

Patil, the only earning member in a family of six, does not own a vehicle, and chose the closest bank for an account. The closest nationalised bank is 15 km from his village, the district cooperative bank 10 km.


Low rural Internet connectivityLike 83% of Indians who do not own a smartphone, Patil too does not have an Internet connection on his cell phone. So, even though he has a bank account, he cannot access Internet-based banking services.

When asked if he has an ATM card, he laughed and said: "The nearest ATM is 40 km away [IndiaSpend found the closest was 25 km away, but it is unclear if that worked]".

Mini truck after truck of red onions entered Lasalgaon onion market, the largest in Asia, as a sense of gloom pervaded the air. Farmers huddled in corners as traders decided the price of onions at auctions.

"Ever since notebandi, the rates have decreased by half," Patil said.Onions, which were sold for Rs 1,000-1,200 per quintal (100 kg) in the weeks before notebandi, are now sold for Rs 600-700 per quintal.

There were no auctions for ten days after demonetisation because of a lack of valid notes in the market. Onions stored in the market stayed unsold and when markets reopened, new produce flooded the market reducing onion prices.

Farmers have no choice but to sell the red onion at whatever price it sells, as it does not last beyond 10 days, unlike the lighter coloured 'unhal' onion that can be stored for three months.

Madhavrao Thorat, another marginal farmer, has no time to spare to stand in the lines outside banks as he is sowing onions in his field, in the village of Devgaon, more than 200 km north of Mumbai. The nearest nationalised bank is 8 km away, and the nearest ATM 15 km away. He has not been able to pay his labourers because of a lack of cash.

Profits from agriculture have been declining as costs have tripled over the last few years, IndiaSpend reported in March 2016. Coupled with a crash crunch due to demonetisation, and falling prices, Patil is ready to quit.

"Given a choice, I would like to find a job and migrate. Farming is a loss-making business," said Patil, who enrolled in college, but never completed his bachelor in arts degree. His wife has a diploma in education, but no job.

"Right now, I don't have a choice as I am supporting my younger brother," he said. "But very soon, I will quit farming and look for another job."


Read more at: http://www.sify.com/finance/noteban...shless-news-demonetisation-qmqrwMdfabahj.html


I know demonetisation had noble goals, but implementation was very poor. The medicine was worse than the disease itself.

I hope the consumer is getting onions at half the price, but the producer is suffering and may not survive.

 

[prasad1]

 

[prasad1]

ARUNDHATI BHATTACHARYA, who heads State Bank of India, the country’s largest bank, has said that the government should find ways to disincentivise cash transactions, such as imposing a charge or levy above a specified limit or threshold, after normalcy is restored in banking operations following the demonetisation move.
According to Bhattacharya, if India wants to de-emphasise cash, there should not only be an incentive for people to move towards a cashless economy but also a disincentive for transacting excessively in cash, while leaving out small-ticket transactions.
“Cash imposes a huge burden. We don’t understand it as it is not immediately visible. It is a huge burden on society. Why should a country have to take on itself a huge burden of managing a totally cash economy? It is not cheap and the physical infrastructure to maintain cash is not cheap,” she told The Indian Express in an interview.

 

[V.Balasubramani]

India is embracing digital like never before: Vijay Shekhar Sharma

Excerpts:

An elated Sharma thanked the Economic Times jury for choosing him amidst tough entrepreneurial competition and said “I believe today is the time when India has unprecedented opportunity to become digital.

Today's India is embracing digital like never before. Everyone from small tea vendors to large retailers are using digital payments.

Today is the time when India is creating its first domestic digital market; when companies who have traditionally built software for the rest of the world will - for the first time - build software for the common man in the country.

Today is the time when the Indian tech entrepreneur chooses India to be the primary market for his/her product and technology.

I believe this is the time when India’s rich and poor, old and young, haves and have nots make technology a way of life. I believe this is the time to fulfill the dream of our forefathers - to make India the first world in technology and innovation. The time is here. And now.

Thank you so much for the honour.”


Read more at:
http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst

 

[prasad1]

UPI: What the govt wants you to believe vs what you should know

[h=1]UPI: What the govt wants you to believe vs what you should know[/h]

Who is responsible for grievance redressal?
Why are the card details so easily obtainable?
The NITI Aayog may want us to believe this is one of the easiest payment systems in the world, but Tinesh Bhasin decodes the many unanswered queries and concerns involving the United Payments Interface.
Illustration: Uttam Ghosh/Rediff.com

Amitabh Kant, chief executive of Niti Aayog, has described United Payments Interface or UPI as one of the easiest payment systems in the world. One simply needs to know the Aadhaar card number or Virtual Payment Address of the receiver. Then, use your thumb to access your bank account and transact. The best part: You don't have to remember any bank account details.
Sounds simple? It is, but for the confusion that remains at both bank and customer's ends.
In an interview to a television channel, Arundhati Bhattacharya, chairman of the country's largest bank, State Bank of India (SBI), pointed out that there was little clarity on which bank would address a grievance if a transaction failed and who would take the responsibility for reconciliation. Though transactions on UPI have jumped from 3,721 a day on November 8, the day demonetisation was announced, to 48,238 a day on December 7 -- an increase of 1,196 per cent -- many are still unconvinced.
Who is responsible for redressal?
There could be four parties in a UPI transaction: Two app developers (sender's and receiver's), the bank from which money is sent and the receiving bank. In UPI, a person can use any bank's app without being its customer and add another bank's account to it. But, if a transaction fails and the funds don't return to the sender's account, he has no option but to approach his bank to resolve the problem.
Bankers say at present, none of the parties has visibility on where the issue lies and there's no automatic reversal of money.
"National Payments Corporation of India's (NPCI) officials do help to resolve such problems but the volume of transactions is quite low. It will be difficult for banks, as well as NPCI, to handle grievances when the volumes are in millions," says a banker.
And, the customer will need to proactively follow up with banks.
How does one reconcile?
When a transaction is initiated from the sender's account, the request goes to NPCI's server, which is then forwarded to the receiver's bank. Say, the transaction gets timed out before the confirmation is sent but the receiver's account is credited with the money. In such a case, the sender will get a transaction failure message, which means the money has not left his bank account, but the other bank has already received the funds. The two banks will need to reconcile such transactions by debiting either the sender's or the receiver's account.
It can get more complicated if the receiver transfers or withdraws the money immediately. Banks have, therefore, requested NPCI to first confirm with the receiving bank whether the transaction has failed, before sending this message.
Discomfort with on-boarding process
A few banks are also not comfortable with the on-boarding process, which requires only the last six digits of a debit card number and its expiry date. These details are easily obtainable, as people hand out their cards at point-of-sales (PoS) terminals. Banks have asked NPCI to make users key in their card's personal identification number when signing up.

Lack of merchant support
This is one of the key reasons for low transaction volumes. "Banks have not launched payment solutions for merchants on UPI," says Vivek Lohcheb, co-founder of Trupay.
Technology issues
Lohcheb points out that earlier if a person had dual SIM mobile phone and the registered number was not in the primary SIM slot, the registration would fail. Also, when a person changes his mobile phone, he would need to register again for UPI services.
Most believe things would be ironed out. "There are teething issues. Once those are resolved, most transactions in the country will be done on the UPI. No system in the world is as simple and as interoperable as the UPI," says Manju Agarwal, deputy managing director, corporate strategy and new business, SBI.
Agrees Sangram Singh, head of card and payments business, Axis Bank: "UPI is still in its early stage. Once there are sizable active users (50 million), it will see exponential growth. This should happen over the next two-three quarters."
http://uswww.rediff.com/business/re...uld-know-demonetisation-note-ban/20161219.htm

 

[Vaagmi]

UPI: What the govt wants you to believe vs what you should know

UPI: What the govt wants you to believe vs what you should know



Who is responsible for grievance redressal?
Why are the card details so easily obtainable?
The NITI Aayog may want us to believe this is one of the easiest payment systems in the world, but Tinesh Bhasin decodes the many unanswered queries and concerns involving the United Payments Interface.
Illustration: Uttam Ghosh/Rediff.com

Amitabh Kant, chief executive of Niti Aayog, has described United Payments Interface or UPI as one of the easiest payment systems in the world. One simply needs to know the Aadhaar card number or Virtual Payment Address of the receiver. Then, use your thumb to access your bank account and transact. The best part: You don't have to remember any bank account details.
Sounds simple? It is, but for the confusion that remains at both bank and customer's ends.
In an interview to a television channel, Arundhati Bhattacharya, chairman of the country's largest bank, State Bank of India (SBI), pointed out that there was little clarity on which bank would address a grievance if a transaction failed and who would take the responsibility for reconciliation. Though transactions on UPI have jumped from 3,721 a day on November 8, the day demonetisation was announced, to 48,238 a day on December 7 -- an increase of 1,196 per cent -- many are still unconvinced.
Who is responsible for redressal?
There could be four parties in a UPI transaction: Two app developers (sender's and receiver's), the bank from which money is sent and the receiving bank. In UPI, a person can use any bank's app without being its customer and add another bank's account to it. But, if a transaction fails and the funds don't return to the sender's account, he has no option but to approach his bank to resolve the problem.
Bankers say at present, none of the parties has visibility on where the issue lies and there's no automatic reversal of money.
"National Payments Corporation of India's (NPCI) officials do help to resolve such problems but the volume of transactions is quite low. It will be difficult for banks, as well as NPCI, to handle grievances when the volumes are in millions," says a banker.
And, the customer will need to proactively follow up with banks.
How does one reconcile?
When a transaction is initiated from the sender's account, the request goes to NPCI's server, which is then forwarded to the receiver's bank. Say, the transaction gets timed out before the confirmation is sent but the receiver's account is credited with the money. In such a case, the sender will get a transaction failure message, which means the money has not left his bank account, but the other bank has already received the funds. The two banks will need to reconcile such transactions by debiting either the sender's or the receiver's account.
It can get more complicated if the receiver transfers or withdraws the money immediately. Banks have, therefore, requested NPCI to first confirm with the receiving bank whether the transaction has failed, before sending this message.
Discomfort with on-boarding process
A few banks are also not comfortable with the on-boarding process, which requires only the last six digits of a debit card number and its expiry date. These details are easily obtainable, as people hand out their cards at point-of-sales (PoS) terminals. Banks have asked NPCI to make users key in their card's personal identification number when signing up.

Lack of merchant support
This is one of the key reasons for low transaction volumes. "Banks have not launched payment solutions for merchants on UPI," says Vivek Lohcheb, co-founder of Trupay.
Technology issues
Lohcheb points out that earlier if a person had dual SIM mobile phone and the registered number was not in the primary SIM slot, the registration would fail. Also, when a person changes his mobile phone, he would need to register again for UPI services.
Most believe things would be ironed out. "There are teething issues. Once those are resolved, most transactions in the country will be done on the UPI. No system in the world is as simple and as interoperable as the UPI," says Manju Agarwal, deputy managing director, corporate strategy and new business, SBI.
Agrees Sangram Singh, head of card and payments business, Axis Bank: "UPI is still in its early stage. Once there are sizable active users (50 million), it will see exponential growth. This should happen over the next two-three quarters."
http://uswww.rediff.com/business/re...uld-know-demonetisation-note-ban/20161219.htm

LOL. One more CP exercise without any value addition. I have already read this and the arguments that followed. LOL.

 

[prasad1]

LOL. One more CP exercise without any value addition. I have already read this and the arguments that followed. LOL.

Listen ye Listen ye :Me, Me, Me, have read and understood, why must anyone ever question me. I the most medhavi has passed judgement. I Yaaaaa can understand, and you minions must listen to me. I alone will LOL you out.
I do not even know why there are other opinions. I the most knowledgeable "Medhavi" in my original knowledge will give out edicts.


Sorry I did not get that memo. I get information and education from various sources. I use my Judgement to analyse them. Then I post it giving source so others may do their own analysis. I do not propose edicts. I only post opinions.

Giving someone a piece of your soul is better than giving a piece of your heart. Because souls are eternal. --Helen Boswell

Ms. Boswell not being a Hindu would not understand the Hindu way.
[FONT=Verdana, Geneva, sans-serif]In Hinduism Atman (loosely translated as soul) is indivisible. It basically means that in our deepest selves, we are divine. All living things are divine in their deepest selves. Now, that divine self may be hidden or covered over by hatred, envy, fear or other negative things. But, it is there nonetheless and it is our "true" and "eternal" selves.[/FONT]

 

[V.Balasubramani]

Over 70% rural citizens have adopted e-wallets: IT Ministry

more than 85 per cent of the merchants have adopted the e-Wallet system and 13 per cent have opted for UPI

More than 70 per cent of rural citizens have adopted the methods of e-wallets followed by Unified Payment Interface (UPI) payment option, the Electronics and IT Ministry said today. “An overview of the current data available with the Ministry of Electronics & IT (MeitY) shows that more than 70 per cent rural citizens have adopted the methods of e-wallets, 16 per cent opted for Unified

Payment Interface (UPI),” the ministry said in a release.

Rest of the people looked at Unstructured Supplementary Service Data (USSD), Adhaar Enabled Payment System (AEPS) & Cards or Point of Sale(PoS).

Similarly, more than 85 per cent of the merchants have adopted the e-Wallet system and 13 per cent have opted for UPI, the statement said.

“The speed and scale at which digital transformation in taking place in India is paving the way for a digitally empowered, participative and inclusive society,” MeitY Secretary Aruna Sundararajan said.

Read more at: http://www.financialexpress.com/ind...-have-adopted-e-wallets-it-ministry-2/481047/