Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Sunday, 27 November 2016

How to go Cash - Less ?



While talking on " Man ki Baat " broadcast yesterday , Shri Narendra Modiji , once again urged the citizens to go " Cash Less " by making their Mobile phones , their very own bank branch


I am sure , Shri Modiji realizes that no country can ever become totally cash-less


But , at the same time , India has the greatest potential to move towards non-cash transactions , considering that , currently , some 90 % of our transactions are through cash


In order to speed-up this transition , Shri Modi has appointed a committee of Secretaries , headed by Shri Amitabh Kant , CEO - NITI Aayog


While thinking up " Ways and Means " to speed up this transition , I am sure the Committee will consider the following hurdles :


*  India has only 215,000 ATM machines , with 95 % located in cities


*  Then there are just 1.44 million PoS ( Point of Sales ) / Card Readers for 50 million shops


*  This means , rural folks just do not have enough " devices " for making digital payments


*  At the current rate of printing , replenishing those OLD notes ( Rs 500 / 1000 ) with NEW
   notes ( Rs 500 / 2,000 ) , will take 18 months !


   Even if we assume that this process ( of printing of NEW notes got started ) , 6 months
   ago , it will take another 12 months for enough CASH to be available to sustain , day to
   day  purchase / sale by people


*  In absence of these " Devices " , availability of 70 Crore DEBIT CARDS ( of which , 30
   crore are RuPay cards ) , is of no help !


   It must be remembered that only 2 months back , some 32 lakh cards got hacked !


   Rural owners ( of RuPay cards , issued with 25 crore Jan Dhan accounts ) are not savvy
   enough to change their PIN / Net Banking Passwords , every 3 months !


And, it is obvious that millions of such " devices " just cannot be manufactured and installed , all over the country ( especially , in the far flung rural areas ), within 3 months


But , as Shri Modiji pointed out , given that Indians have some 1033 million mobile phones ( of which , approx 240 million are Smart phones ), switching over to Mobile Wallets , is the only quick solution to going " Cash Less "


No wonder , in the past 20 days ( since demonetization announcement ) , Paytm has added 8 million new users to its base of 150 million !


In a TV interview a few days back , Vijay Shekhar Sharma ( CEO - Paytm ) said :


" We have advanced our target of reaching 500 million users , from 2020 to 2018 "


And considering that it will take another 5 years for those 750 million FEATURE PHONES , to get replaced with SMART PHONES , he is in a tearing hurry to make Paytm app available , even on those feature phones - by calling a toll free number or by sending a text message !


And , in this rush ( to DIGITAL GOLD ? ) , he is not alone


Hardly a day passes without some bank or some Start Up , launching a Mobile Wallet !


Dear Shri Amitabh Kant :


There is no doubt , you will encourage PRIVATE SECTOR players to launch Mobile Wallet apps


But you have this opportunity to SIMPLIFY the use of Mobile Wallet Apps - the use , which appears " daunting " to rural folks


Here is how :


*  Based on UPI / Indiastack , come out ( in next 6 days ? ) , with M-Rup ( RuPay based
   mobile app , linked to Jan Dhan A/c and to Aadhar Biometric verification of the user )


*  Citizen can download M-Rup ( whether on Smart phone or on feature phone ) ,from
   Google App store


M-Rup can be activated only after user enters his Jan Dhan A/c number / his Aadhar Card
    number and his Mobile number , in the App


*  At the time of " Activation ", let the M-Rup wallet get filled up with Rs 100 ( as a freebie )


*  This initial loading of M-Rup with Rs 100, to happen, even if the user has no Jan Dhan a/c


*  This initial loading will enable the users to " experiment " transferring or receiving digital
   money ( even between friends , none of whom have Jan Dhan accounts !). Make it FUN !


I am sure , you will say :


" How does this make M-Rup any DIFFERENT from any other Mobile Wallet app ?  

Where is
  that SIMLIFICATION of use ? "



Dear Shri Amitabh :


Like you ( and of course , Shri Modiji ) , I have a great faith in the ability of Indian software engineers ( local or NRI ) to come up with revolutionary solutions / innovations !


Just ask Sundar Pichai , Sam Pitroda , Satya Nadela , Sachin Katti , Pranav Mistry , Sanjay Sarma , Nandan Nilekani etc , if they will help implement the following :


*  Buyer  buys something worth Rs 100 from a shopkeeper


*  Buyer and the Seller , look into their own mobile-cameras ( of  smart phones
   loaded with M-Rup ) for biometric Aadhar identification / linked to Jan Dhan a/c


*  Seller speaks in his mobile : " Muze Sau Rupiah dedo "


*  Buyer speaks in his mobile : " Inko Sau Rupiah dedo "


*  Message flashes in the mobile screen of Seller : " Tumhare account-me Sau Rupiah
   Jamah ho gaya / GST bhi kaat ke Sarkar-ko bhej diya "


*  Message flashes in the mobile screen of Buyer : " Tumhare account-se , Sau Rupiah inko
   Bhej Diya . Abhi balance me teen sau sath rupiah bacha hai "



I request all concerned , not to insult our engineers / scientists / geeks , by doubting if such SIMPLIFICATION ( based on day to day spoken language ) is possible


Doubting Thomas may want to look up ... PILOT   

{  http://www.waverlylabs.com/  }


This is the only way rural India can bypass the Jurassic Age of Plastic Cards to usher into a CASH-LESS society !


-----------------------------------------------------------------------------------------------------

28  Nov  2016


www.hemenparekh.in / blogs




   






No comments:

Post a Comment