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Indian Government Announces New Measures to Ease Cash Shortage in the Country

Government has increased the weekly withdrawal limit from 20,000 to 24,000

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old notes to become illeagal by 2017
Indian Currency. Pixabay
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November 16, 2016: The government of India took a big step to uncover the black money in the country. The government demonetized ₹500 and ₹1000 banknotes on 8th November, 2016 and ceased the use of the banknotes in any form of legal tender in India.

Prime Minister Narendra Modi addressed the people in an unscheduled live televised address at 8:15 pm the same day. In the announcement, Modi declared the usage of ₹500 and ₹1000 banknotes and told everyone that the notes can be exchanged at the banks until December 30. But a long queue outside every ATM and bank has hampered the process, mentioned Reuters.

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It seems that RBI was not prepared to face the demonetization. RBI didn’t have enough supply of the notes for the exchange. Also, the new notes of ₹2000 are of different size and so the ATM machines need to be modified to dispense the notes. There is a long queue of people waiting to exchange their notes. ATMs are running out of cash faster as they can dispense only ₹100 notes.

The under-preparedness of government has led to the creation of extreme chaos. The move is considered economically imprudent.

According to Reuters report, people are desperate for cash and so the workforce is wasting long hours standing in the long queues at the Banks and the ATMs. The abrupt call-back for the 86% of the country’s cash has brought the economy to a standstill.  The wide conjecture on property and gold has affected the economic stability and investments.

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The people most hard hit by the demonetization are the ones in the rural areas who do not have a bank account. Indians who rely on cash for their daily transactions are struggling to pay for the basic commodities.

In a political rally in Uttar Pradesh, Modi said, “I am aware you are facing difficulties… I understand the inconvenience.”

“I am really pained by the inconvenience and that is why I am working tirelessly to help people overcome this situation.”

“I will never let anyone loot money that belongs to India’s poor.”

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The government has been trying hard to deal with the cash crunch. New micro cash machines will be installed across the country and banks are asked to waive off the transaction charges on credit and debit cards.

India’s secretary for Economic Affairs, Shaktikanta Das, told reporters that government has increased the weekly withdrawal limit from 20,000 to 24,000. He also said that the re-calibrated cash machines would start to dispense new 2,000 rupee notes within two days.

The government has allowed a network of banking correspondents to provide people from rural area access to the banking services.

Prepared by Diksha Arya of NewsGram. Twitter: @diksha_arya53

 

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Copyright 2016 NewsGram

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BHIM app: All about going Cashless

The BHIM app was developed by NPCI on 30th December 2016 and later launched by PM Narendra Modi.

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BHIM app works across all bank accounts. Wikimedia commons
BHIM app works across all bank accounts. Wikimedia commons

The act of demonetization by the government last year had simply made us stand on our heels. People were fighting their way out in the absence of hard cash and thus made us oblige to the digital platform.

BHIM app is one of the various digital money transfer app (application) which uses UPI (Unified Payments Interface). The app was developed by NPCI on 30th December 2016 and later launched by PM Narendra Modi. It aims towards bringing Financial inclusion and making us a digitally empowered society.

BHIM app is backed by the Government of India making it a more reliable cashless payment option (unlike PayTM). Pixabay
BHIM app is backed by the Government of India making it a more reliable cashless payment option (unlike PayTM). Pixabay

Here, we will help you to walk through the procedure involved in the better use of BHIM app.

How to download BHIM app

  • You can download and install BHIM from Google play store for Android and Apple store for IOS.
  • Select whichever language you prefer.
  • Select the mobile number which is registered with your bank.
  • Set a 4 digit password to log in.
  • Link a bank account.
  • Now, you need to set a UPI pin by providing the expiry date and last six digits of your debit card.
  • Your account is now registered and you are ready to go cashless.How to use BHIM without internet
  • You can dial *99# from your phone and you will be able to avail the same features of BHIM on your mobile.
  • *99# can also be used to register for BHIM.
BHIM app has three level authentication including device ID or mobile number, bank account and UPI pin, which makes it the most secure option. Pixabay
BHIM app has three level authentication including device ID or mobile number, bank account and UPI pin, which makes it the most secure option. Pixabay

Features of BHIM app

Send Money
With this feature, you can send money by scanning a QR code, combination of Account Number and IFSC by using Virtual Payment Address (VPA).

Request Money
This feature allows you to send a collect request by entering VPA. Also, through BHIM, you can transfer money using a Mobile that is registered with BHIM or *99#.

Scan and Pay
This feature allows you to pay by scanning the QR code.

Transactions
This one will show your transaction history. It shows pending UPI collection request, so you can approve or reject payments. Also, there is an option to report if a user wants to raise any complaint.

Profile
This option will help you to view the static QR code and Payment addresses that are created. The QR can be downloaded and also be shared through WhatsApp or Email.

Bank Account
This feature enables you to check the bank account (which is linked to BHIM). You can set or change your UPI pin or the bank account linked with BHIM App by clicking on ‘Change Account’. You can also check your account balance using this feature.

BHIM is not a wallet. It is a payments application which allows users to make instant bank transfers. Pixabay

Why should you use the BHIM app?

  • It works across all bank accounts.
  • You can access it without internet.
  • BHIM is backed by the Government of India making it a more reliable cashless payment option (unlike PayTM).
  • It has three level authentication including device ID or mobile number, bank account and UPI pin, which makes it the most secure option.
  • All in all, BHIM has turned out to be the safest and most reliable cashless payment option against competitors like Paytm.