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Cards, ATMs, POS will be redundant by 2020 in India: Niti Aayog

He said, "They will all become redundant in India, and India will make this jump because every Indian will be doing his transaction just by using his thumb in thirty seconds...."

By: PTI | Published: January 7, 2017 9:23 pm

 

Niti Aayog, demonetisation, Niti Aayog cashless transactions, Cashless economy, Niti Aayog demonetisation Niti Aayog.

Amid the big push being given to digital transactions post-demonetisation, Niti Aayog CEO Amitabh Kant today said cards, ATMs and POS machines would become redundant in the country by 2020. “….India is in the midst of huge huge disruption in the world of both financial technology and in terms of social innovation (there is) huge huge innovation and this disruption will enable India to leapfrog…,” he said.

“…and by 2020 my view is that in the next two-and-a-half years, India will make all its debit cards, credit cards, all ATM machines all POS machines totally irrelevant,” Kant told a session at Pravasi Bharatiya Divas 2017, a three-day mega event of Indian diaspora. He said, “They will all become redundant in India, and India will make this jump because every Indian will be doing his transaction just by using his thumb in thirty seconds….”

Speaking at a session on ‘Startups and innovations which have social impact in India’ at the Youth Pravasi Bharatiya Divas here, he said, “What we are pushing now is digital payment in a very big way and it is a huge disruption with several innovative methods. “India has created a back end in terms of biometric which will enable India…,” he said, highlighting recently launched BHIM app and Aadhar enabled payment system initiatives.

Pointing out that India is the only country with a billion mobile and billion biometric, Kant also noted that India is largely a cash driven economy. He said whatever the biggest attempts of demonetisation and push for digital payment, only 2 to 2.5 per cent of Indians pay taxes, so India needs to move from a non-formal to a formal economy. “It is impossible for India to become a 10 trillion economy like this….two trillion dollar is a formal economy and another one trillion dollar is an informal black economy. It is not possible for India to grow. So you need convert the non-formal economy to a formal economy, thats what the effort is,” he added.

Noting that ability of people living in rural areas to utilise technology to leapfrog is much quicker and faster than literate people living in urban areas, Kant said in social innovation and financial technology it was the young Indians who were disrupting the world. He said they will enable India’s leapfrog and take it to a 10 trillion dollar economy. “…so the young people of India must have the hunger, ambition and passion to drive India to innovation, to startups and disrupt India in a manner that it has never seen before,” he added.

Noting that India is growing at about 7.6 per cent per annum, Kant said it is an oasis of growth in the midst of a “very very barren economic landscape” across the world and the challenge for the country was to grow at even higher rates of 9 or 10 per cent for a period of three decades or more. Speaking about India’s largest young population, he said
it was a huge opportunity for the country.

“This is the biggest social and economic phenomenon that is taking place across the world, as the population across Europe and America is getting older, the population in India is getting younger…” he added. Listing out various reforms agenda and ease of doing business initiatives taken up by the government and country’s FDI growth, Kant stressed on the huge emphasis for the startup movement which helps in job creation and addresses challenges faced by country by finding solutions.

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  1. Kalidas
    Jan 7, 2017 at 4:41 pm
    Even the advanced countries have biometrics of their citizens, but they use it only for authenticating ideny at national security counters such as airport arrival, police records or for issuing pports, social security and national ID cards . These biometrics are treated as strictly confidential, and personal property of the concerned person. By Law relating to privacy, the use of such biometrics is strictly prohibited for commercial transactions.
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      MyTake
      Jan 7, 2017 at 6:44 pm
      Slowly replace all 100 Rupee notes and anything above. Flood marked with other lower denomination notes. This will make producing a fake note costlier and force market to go cashless at the same time.
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      1. O
        Ohm
        Jan 7, 2017 at 5:56 pm
        Digital ideas not a panacea
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          Trun
          Jan 7, 2017 at 4:04 pm
          How about future of Niti Ayog?
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            adarsha badrinath
            Jan 8, 2017 at 2:03 am
            It is good that government is trying out unique solutions for India's problems. However, there should be adequate security to prevent fraud. Dual authentication is a must since even finger prints are after all files, and can be copied. Is it not possible to have finger print scanners that can ess body temperature too and record date and time in each file encoded, so as to ensure that it is a real-time genuine human finger impression and not just a file. Secondly. since we have a large potion of illiterates, system should be easy to understand with symbols to indicate withdrawals from the persons account or rupay card. Illiterates can use technology; After all they do go out and vote on electronic machines and know how to use mobile phones.
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