India joined the "Better than cash" alliance by UN, as per the press release of Sep 1, 2015. This is on The
announcement comes on the First Anniversary of the Prime Minister Shri Narendra Modi’s
flagship financial inclusion programme Pradhan Mantri Jan-Dhan Yojana (PMJDY).
The PMJDY for India is the largest attempt at financial inclusion. I anticipate it to be followed by suitable programs to ensure that the funds in the account remain electronic and not get converted to cash for as long as possible. This can be done by promoting the electronic payments as envisaged by Better than cash alliance, ensuring that suitable acceptance infrastructure is created to make electronic payments as pervasive as cash. (See the About page for what differentiates cash from non-cash).
Reduction of MDRs, specially for debit cards, as well as increased proliferation of Point of Sale terminals that accept not just credit and debit cards, but also mobile wallets and other prepaid instruments will go a long way to achieve this. UPI by NPCI is a good step in this direction, but forces in the banking industry seem to be working to slow down the disruption in the financial sector.
The PMJDY for India is the largest attempt at financial inclusion. I anticipate it to be followed by suitable programs to ensure that the funds in the account remain electronic and not get converted to cash for as long as possible. This can be done by promoting the electronic payments as envisaged by Better than cash alliance, ensuring that suitable acceptance infrastructure is created to make electronic payments as pervasive as cash. (See the About page for what differentiates cash from non-cash).
Reduction of MDRs, specially for debit cards, as well as increased proliferation of Point of Sale terminals that accept not just credit and debit cards, but also mobile wallets and other prepaid instruments will go a long way to achieve this. UPI by NPCI is a good step in this direction, but forces in the banking industry seem to be working to slow down the disruption in the financial sector.
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