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Cash dependency to be prevented by promoting Digital Payments

Prime Minister Narendra Modi, with the launch of the Digital India week in 2015 reportedly said that he dreams of a digital India where e-banking and mobile banking ensures financial inclusion. PM’s vision is eventually turning into reality with the new initiatives taken like the Digital India campaign led by his government. Adding to that, increasing number of innovative fintech companies are also there which are offering various digital pay solutions. Leading to the total value of transaction, which is $50 million approximately, all over digital payments this year and is estimated to reach $700 billion by 2022.

The increase in the digital payments is due to the acceptance of digital mode of payments throughout the country. After demonetisation, several policy and digital infrastructure amendments were implemented such as GST, financial inclusion and new payment systems such as UPI and Aadhar based payments that boosted the digital payments sector even more. The digital growth has been accepted by about 80% of the urban population, and with the acceptance of cashless payments is gradually preventing the dependency of a customer in cash. Nevertheless, semi-urban and rural outreach of the financial and digital services, hasn’t been such extensive. It is of course because the citizens in the rural community are unaware of the services that are available. And in case they are aware of few of them, they don’t have enough information to utilise the services that are available to them.

Such cases are the ones which provide a perfect platform for organizations like Payworld, to fill in the gap for the untapped audience. It has become the leader in providing assisted financial services to the unbanked audience, and it is also known to have around two lakh retailers that are spread across 643 cities in India. Nevertheless, Payworld is helping to get more job opportunities andcreating new-fangled job avenues for the sake of impending genre of retailers that again helps in expanding the retail network. The Payworld team and its financial leaders, take the total responsibility of training the retailers on new financial services by conducting seminars seminars.

The Union budget 2019 was aimed more at encouraging digital payments, which will further help in reducing the dependency on cash. In order to push digital payments, Finance Minister Nirmala Sitharaman has declared that there will be levying of 2% tax deducted at any source on cash withdrawals which are exceeding Rs 1 crore in a year from any savings or credit account and businesses with an annual turnover of more than Rs 50 crore can provide payments through UPI, BHIM, UPI- QR Code, Aadhaar pay and debit card options and no charges or Merchant Discount Rate (MDR) will be imposed on them or their customers.
Majority of the financial leaders are supporting the budget and believe that the increase in the current digital services can help them reach mostof the remote areas to extend their financial services and bring new set of job opportunities in the digital sector.

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