Building on the remonetisation exercise to bring a large portion of informal economy to a formal format, the Union Budget aims to strengthen digital payment infrastructure across the country. It is indeed encouraging to witness this digital push, as India transforms into a less-cash and tax-compliant economy. We will witness digital payments become the new normal this year and gradually, it will go a long way in eliminating our dependency on physical cash.
I believe the budget proposals are aimed at boosting consumption levels. At the same time, the focus on digital payments will lead to revolutionary transformation in payment habits of a large majority of 1.3 billion Indians. Better transparency in incomes will lead to new taxpayers and increase government revenues to be used for development purposes.
Upgrading digital infrastructure to support cashless transactions in rural and semi-urban areas will encourage more merchants and consumers to transact on non-cash and online platforms. However, we feel the government should also have considered promoting start-ups in the digital payment space and provided sops for fin-tech companies.
There have been concerns over security, privacy, infrastructure build-up and promotion of cashless methods. The budget speaks of a plan to build up the infrastructure necessary to support cashless transactions with a focus on rural and semi-urban areas. Post offices, fair price shops and banking correspondents will be used to promote cashless transactions. These are indeed good steps.
Upasana Taku
Co-Founder,MobiKwik