|Published : 27 Nov 2016, 16:55:27|
‘Cash crunch a chance to enter digital world of payments’
Indian Prime Minister Narendra Modi said the cash crunch following the surprise ban on 500-rupee and 1000-rupees notes is a chance to enter the digital world of payments.
"I want to tell my small merchant brothers and sisters, this is the chance for you to enter the digital world," Modi said in his monthly address on national radio on Sunday, reports Reuters.
He said the government understands that millions have been affected by the ban on 500-rupee and 1000-rupees notes, but he defended the action.
Modi said speaking in Hindi, urging them to use mobile banking applications and credit-card swipe machines.
"It's correct that a 100 per cent cashless society is not possible. But why don't we make a beginning for a less-cash society in India?" Modi said. "We can gradually move from a less-cash society to a cashless society."
More than 90 per cent of consumer purchases in India are transacted in cash, Credit Suisse estimates. While a smartphone boom and falling mobile data prices have led to a surge in digital payments in recent years, the base still remains low.
Modi urged technology-savvy young people to spare some time teaching others how to use digital payment platforms.
The Indian government announced the ban on two bank-notes on Nov 8 to crack down on corruption, people with unaccounted wealth, and counterfeiting of notes. –RH