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Awareness about Digital Transactions and Financial Literacy must for Cashless Economy

In the on-going three-day tech festival at IIT Roorkee, the panel discussed the effects of demonetisation, use of mobile wallets and digital transactions in rural India

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Digital Transaction. Pixabay

Roorkee, March 26, 2017: Financial literacy and awareness about digital transactions is paramount in rural India to make the cashless economy a reality, executives of mobile wallet-provider services said here at a panel discussion.

In the on-going three-day tech festival at IIT Roorkee, the panel discussed the effects of demonetisation, use of mobile wallets and digital transactions in rural India.

“Illiterate people do not know how to use digital transactions, though they know how to use a smartphone. But we are trying to spread financial literacy,” Head (Enterprise, Sales and Strategy) of Mobikwik Atul Mehta said.

Mehta added that people in large numbers were using mobile wallets following demonetisation.

Vice President of Reliance Jio Money Karthik Nandyal said financial awareness was an on-going process and it would take some time to reach every part of rural India.

He cited examples of other countries where cashless economy was functional and said that India can also make it possible.

The panelists said that even after demonetisation, there were parts of rural India where there was no concept of banking.

“Post-demonetisation, though there has been some awareness but more needs to be done. Banking system in rural areas will help aggregating the capital for productivity purposes,” Mehta said.

On how secure the digital transactions were, Professor Emeritus of Management Studies at IIT Roorkee Vinay Kumar Nangia said there were lapses in security aspects and there was a need to enhance the security architecture.

Though the National Payments Corporation of India (NPCI) assured earlier this week that there is “no vulnerability of loopholes” reported in Bharat Interface for Money (BHIM) or the Unified Payments Interface (UPI) applications, Nangia said that BHIM was not a forensically tested app.

“It cannot handle the load as it is expected. There is a danger,” Nangia said.

However, Mehta argued that the digital payments through mobile wallets was safe and they were working on making the transactions more secure.

IIT Roorke Director Ajit Kumar Chaturvedi told IANS that the campus was an example of cashless transactions as most of the vendors inside the institute used e-wallets. He said the campus also hopes to spread awareness among other people outside the campus so that cashless economy becomes a reality. (IANS)

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Paytm Payments Bank Ahead of Major Banks in Digital Transaction Target

Paytm Payments Bank has a market share of 19 per cent and 32 per cent respectively, in terms of mobile banking and UPI transactions

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Paytm. Wikimedia

Paytm Payments Bank has received a target of 501.16 crore digital transactions for the financial year 2019-20 from the Ministry of Electronics and Information Technology (MeitY), higher than the targets set for major banks including HDFC Bank, ICICI Bank and Punjab National Bank.

In a statement, Paytm Payments Bank said it is only behind the State Bank of India, which has the highest target for digital transactions.

Only five other banks have received a target of more than 100 crore transactions, which include HDFC Bank, ICICI Bank, Axis Bank, Punjab National Bank and Union Bank of India.

“To promote digital transactions in India, MeitY sets the target for all banks and closely monitors the progress on it. This target is significant as it is much higher than the target set for major banks like HDFC, ICICI and Punjab National Bank. It reaffirms Paytm as the leader of digital payments in the country,” the statement said.

Paytm Logo. Wikimedia

In FY 2018-19, the payments bank surpassed the target of 354 crore transactions and recorded 393 crore digital transfers.

Paytm Payments Bank has a market share of 19 per cent and 32 per cent respectively, in terms of mobile banking and UPI transactions.

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“Nearly a third of the total mobile banking transactions in India are powered by Paytm Payments Bank and it processes over Rs 3 lakh crore worth of digital transactions on an annual basis,” it said.

As of April 2019, Paytm Payments Bank had more than Rs 500 crore deposits in savings accounts, which makes it the largest payments bank in India in terms of deposits, the statement said, adding that the bank is aiming to introduce more products and features to increase the monthly processing of savings account payments from Rs 24,000 crore to Rs 40,000 crore in FY 2019-20. (IANS)