Every day we see many articles on
the latest important subject in the lives of Indian people. What they call as
De-Monetisation(whatever that means). Too many buzz words around it. Many
people reacted as if they were stuck by the Amygdala hijack and started to
panic. Some people say that what started as an initiative to curb black money,
now the goal post has shifted to being a Cashless society. And there are many
theories about how cash will be important, and how long will it take for the authorities
to print the currencies. How deficient will it be for livelihood and therefore
how we might be proceeding towards the doomsday?!
While the authorities are
relentlessly promoting online transactions.
Well, point noted. And I am not
here to debate whether the execution is appropriate or not. For the time being,
let us accept the current situation and take a positive outlook. Agreed that
the physical currency printing will have its lead times and the logistics
around it. In my opinion, the authorities are not shifting the goal post to a
cashless society. They are making people aware of going the digital way. And if
not all, even if some people do adopt and change their transactional processes,
to that extent the demand for physical currency would reduce, while the authorities
get ready with the new currency notes. Another question – why Rs.2000? This is
also strategic perhaps. They can do with a big value for less number of notes.
Just for logistical reasons.
Having said that, how can the
future be shaped? The naysayers and the doomsayers have been saying that middle
class is largely affected and the poor in rural areas is affected big time. And
there’s no recourse.
Let’s admit, this is the era of
technology. Solar panels and LED lights have already started illuminating the
villages largely. Mobile penetration and growth is phenomenal. Make the best
use of the system. We have already seen a surge in digital wallets and online
transactions increasing tremendously in the last 2-3 weeks. The current
situation should pave way for a new age economy and India.
Can we have rural friendly
digital transactions being evolved and developed? A new set of ecosystem could
develop in the coming months. For example – can we have a very simplistic point
of sale device which would accept payment based on finger print? One need not
remember a security code. Your finger print could take care of that. The amount
should get automatically get deducted from the corresponding Bank Account or
credit card or any other medium. Keep it simple for the end user but supported
with heavy backend to take care of all the security requirements linked with Aadhar,
PAN or any other mandated gateways. Authentication could have a combination of picture
of the end consumer, finger print and if required any other biometric including
iris scanning. All done in a single cost effective POS device. The consumer will
be agnostic of all the technology behind the transaction.
Now mobile companies have started
getting Banking licenses. The mobile companies should not restrict themselves only
to mobile wallets. They could offer path breaking banking experience for
people. Especially rural people. Other banks could tie up with some mobile
operators. With this combo, any person opening an account could be given a
start up kit like cheque book, debit card etc. Also should give them a mobile
phone with pre-loaded Banking App of the particular bank with the consumers
credentials and biometric authentications. The App should be simple enough for
the user for transaction purposes. Like a mobile game – the currency notes in
their respective denominations could be visibly presented. Seeing is believing.
If a person wants to transfer money to another person – they should choose the
person’s name (with picture displayed) so it is easy for the rural person to
pick the recipient. The account details of the receipient is all taken care
automatically by the system (linked with Aadhar etc etc). And he shouldn’t be
bothered whether it is an IMPS transaction or NEFT or RTGS. All to be taken
care by the system. The transaction should be simple enough for the person to
drag the digital currency note from his account and pasting it to the other
person’s pictorial account and duly authenticated by finger print on the mobile
phone. Bingo, the transaction is done!
Easier said than done. I am sure
with the advent of technologies in banking, mobile communications, cost
effective mobile devices, technologically advanced App developers, superior,
simple and effective Multilingual User Interface, Risk mitigation systems, Security enhancement
facilities including protection from data hacking, thefts etc and backed by social security & government support, the day is not
far.
Afterall, we are a society
with more number of mobile phones than toothbrushes!
