Cashless economy: CMs’ panel meets banks, RBI to push digital bankinghttps://indianexpress.com/article/business/banking-and-finance/cashless-economy-demonetisation-rbi-to-push-digital-banking-4417925/

Cashless economy: CMs’ panel meets banks, RBI to push digital banking

Constituted by NITI Aayog, panel to promote digital payments across India.

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SBI Chairman Arundhati Bhattacharya leaves after attending a meeting with Central Committee of Chief Ministers and experts on demonetisation in Mumbai on Thursday. (Source: PTI)

The Chief Ministers’ Committee on Digital Payment Systems, headed by Andhra Pradesh Chief Minister Chandrababu Naidu, on Thursday met bank chiefs, Reserve Bank Governor Urjit Patel and Deputy Governors on Thursday to discuss the ways and means on converting India into a cashless society.

Axis Bank managing director and CEO Shikha Sharma said that they discussed the strategy to push the acceptance of digital banking in the country. “Using the current infrastructure like Aadhaar-enabled payments, unified payment interface (UPI), point of sale (PoS) and unstructured supplementary service data (USSD), how we can accelerate the digital transactions,” she said. Naidu led the CMs’ committee at the discussions.

Asked about the roadmap for the implementation, Sharma said that banks are trying to do it as fast as they can. Apart from Sharma, SBI chairman Arundhati Bhattacharya,

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ICICI Bank MD & CEO Chanda Kochhar, HDFC Bank MD Aditya Puri and Bank of Baroda (BoB) MD & CEO P S Jayakumar were present at the meeting.

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While Naidu is the convener of the committee on demonetisation, Bihar Chief Minister Nitish Kumar, Tripura Chief Minister Manik Sarkar, Madhya Pradesh Chief Minister Shivraj Singh Chouhan and Puducherry Chief Minister V Narayanasamy, Sikkim Chief Minister Pawan Kumar Chamling, Maharashtra Chief Minister Devendra Fadnavis are members.

“We strongly advocate the public to switch to digital payment modes given that there are several options, there are adequate safeguards and there is an increasing acceptability of this mode of payment by a large number of recipients,” RBI Deputy Governor R Gandhi said.

Constituted by NITI Aayog, the committee will examine and promote the use of digital payment systems across the country. “The move is in line with the government’s thinking to promote transparency, financial inclusion and a healthy financial ecosystem nationwide and to give a boost to the adoption of digital payments systems by people at the grass root levels and small businesses,” Niti Aayog had said in a statement last month.

The committee also includes vice-chairman Niti Aayog, CEO of Niti Aayog and experts. The committee is entrusted with the task of identifying and outlining measures for rapid expansion and adoption of the system of digital payments like cards (debit, credit and pre-paid), digital-wallets, e-wallets, internet banking, Unified Payments Interface (UPI), banking apps and will broadly indicate the road map to be implemented in one year.

The panel will evolve an action plan to reach out to the public at large with the objective to create awareness and help them understand the benefits of such a switchover to digital economy.