[Big News] All Govt. Related Transactions Above Rs 1000 May Be Now Cashless By Law
In a move which can change everything related with financial services in the country, Indian Govt. has decided to go full throttle on adapting cash less payments. In fact, as per reports coming in, Govt. may soon make it mandatory to make all Govt. related transactions above Rs 1000 as mobile or digital based!
Why are they doing it?
As per a report by Task Force on Aadhaar – Enabled Unified Payment Infrastructure, cash based transactions are very expensive, and by adapting cashless transactions for Govt. services and fees, 5-7% of GDP can directly saved.
The Department of Electronics and IT (DeitY) is working on this massive push for electronic based payments, which is actually part of Digital India drive. As per report published by ET, DeitY is right now creating a framework through which “inter-ministerial, vendor transactions or small payments by citizens for government services” will be made cashless as a rule.
Small Payments Through Mobile Wallets
In other words, this means that small payments of Rs 10 or Rs 50 can be made easily using mobile wallets like Paytm, Freecharge, Mobikwik or Oxygen; citizens can pay stamp duty, Govt. fees etc using their Internet banking and pay taxes using their credit cards.
One senior Govt. official said, “Our endeavor through this project is to ensure that at least 90%, if not more, of all government payments happen through some or the other electronic mode, be it through credit card, RTGS, DBT or mobile,”, adding, “Even mobile wallets can be considered for small payments,”
The interesting thing is that, whatever expense occurs due to cashless payments (payment gateway fees, internet charges etc) can be easily balanced off by the reduced cost of maintaining cash based transactions (paper work, employee costs, data base costs, Physical storage and logistics etc). This is the reason DeitY is right now working on developing a uniform mobile app which can be used by every citizen of India to make or receive any payment from any entity.
This is the reason that Govt. may soon make it mandatory for all Govt. transactions above Rs 1000 to be made cashless as a rule.
Paytm founder Vijay Shekhar Sharma has already declared that they will start India’ first payment bank and he made his intentions clear during his Reddit AMA, when he said that mobile wallets may actually open up a whole new world of financial services, and induce a greater amount of transparency and accountability.
But how secure those online transactions would be? What will happen to the people who were involved in maintaining cash based transactions?
Cover image source: marketingunwired.com
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