STOCK MARKET BSE NSE

Nandan Nilekani joins Modi’s bid to make India a cashless society

Infosys billionaire and Congress member Nilekani has joined a panel to plan a path to get more consumers to use digital payments to ease demonetisation's woes, according to a Bloomberg report.

Published: 08th December 2016 09:50 PM  |   Last Updated: 08th December 2016 10:10 PM   |  A+A-

nilekani_23

Nandan Nilekani. File Photo | AP

By Online Desk

PM Narendra Modi has roped in UIDAI chairman and Infosys co-founder Nandan Nilekani for help in handling the transition from a hard cash society to a cashless one, to ease the woes of demonetisation. According to a Bloomberg report, Nilekani, a high-profile Congress member, has joined a panel to chart out a path to digital payments.

The 13-member committee headed by Andhra Pradesh chief minister Chandrababu Naidu met for the first time last week, after which in an interview, Nilekani said, “India has the underlying digital financial architecture in place to get this going”.

Nilekani, along with the other panel members, is working out ways to get more Indians to adopt digital mode of payments, by making use of their own smartphones and increasing the availability and use point-of-sale machines in local villages.

The committee is currently focusing on two key aspects: getting more merchants to accept the United Payments Interface that has already been rolled out by major banks earlier this year in April, and procuring more point-of-sale devices.

The interface makes transferring money as easy as sending a text message. According to Nilekani, boosting acceptance of this payments interface is achievable in weeks. However, getting the estimated one million new POS devices will take much longer, because of the need of a tender to purchase them. Nilekani, who lost the 2014 elections to a key member in PM Modi’s cabinet, said that breaking down the problem into digestible chunks is the first step to solving it.

The committee is likely to meet again this week to look at how to approach those with limited access to technology. While suggesting that each category of phone users should have a different strategy, Nilekani said that while India has 250 million smartphone users, there are about 350 million who only have feature phones while another 350 million don’t have a phone at all.

The real challenge is the 350 million people without phones, many of whom are poor. The plan is to attract all those enrolled in Aadhaar, and enlist the remaining, toward micro ATMs promoted by large Indian lenders which already have a presence in 1,30,000 village retail outlets or kirana stores. “There is a sense of urgency,” said Nilekani.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp