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