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Indian Prime Minister Narendra Modi on Sunday urged the nation's small traders and daily wage earners to embrace digital payment channels, as a cash crunch following the government's surprise ban on high-value bank notes drags on.
Modi, speaking in his monthly address on national radio, said the government understands that millions have been affected by the ban on 500-rupee and 1000-rupees notes, but defended the action.
The government says the bank-note ban announced on Nov 8 is aimed at cracking down on corruption, people with unaccounted wealth, and counterfeiting of notes.
"I want to tell my small merchant brothers and sisters, this is the chance for you to enter the digital world," Modi said speaking in Hindi, urging them to use mobile banking applications and credit-card swipe machines.
"It's correct that a 100 per cent cashless society is not possible. But why don't we make a beginning for a less-cash society in India?," Modi said. "We can gradually move from a less-cash society to a cashless society."
More than 90pc of consumer purchases in India are transacted in cash, Credit Suisse estimates. While a smartphone boom and falling mobile data prices have led to a surge in digital payments in recent years, the base still remains low.
Modi urged technology-savvy young people to spare some time teaching others how to use digital payment platforms.
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On DawnNews
Comments (17) Closed
Nov 27, 2016 02:44pm
What about those who doesn't have a mobile phone at all?
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Nov 27, 2016 04:03pm
Cashless economy will help the country in development and increase bank's lending power.Awesome step by a strong leader .By the way people forget that almost 92% of Indians have mobile phones.But smartphone market has only 35% of it, which is bound to increase further because of the need that is created.Almost all small businesses like Pan Shops and tea stalls are moving towards wallets for transactions these days.On long run this will be a masterstroke.
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Nov 27, 2016 04:19pm
Great move forward. However not very easy task either. We have faith in our government and also have faith that sensible people will support this move.
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Nov 27, 2016 04:37pm
@Sohail Khan 773.62 Million people in India have mobile phones out of the 1.2 billion population. That's nearly 65% of the population.
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Nov 27, 2016 04:57pm
Very smart move...millions of new taxes and jobs will be created... hope our lot wake up as well
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Nov 27, 2016 05:23pm
What is the ultimate truth.. over landing to big, gigantic cooperate sector in India by the banks.. now they cannot recoup the money.. brilliant game is being played to fill the bankrupt banks.. on whose expanse... Same poor miserable people..standing in the lines. while the corrupt to the core not in any sight...Borrowing is not much better than begging; just as lending with interest is not much better than stealing.
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Nov 27, 2016 05:28pm
Whether or not one has a snarphone, all bank ATM cards also work at any point of sale payment machine. Having a mobile phone is not a must.
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Nov 27, 2016 06:00pm
Good try Modi Sb. Basically your plan is failing so you're saying grab on to any possible positive. Cashless banking was going to happen anyways. Now you've just inconvenienced people to stand in lines to open bank accounts, while most of these could have accounts through their cell phone carriers. You aren't achieving anything except a one time tax on black money. You won't stop corruption, it will just be easier with a 2k note and you won't have to guts to pull such a demonization again. If you want to catch black money the only way is to make a lesson out of corrupt people. These unthoughtful moves will only strengthen the corrupt because now no other leader will pull such a stunt again.
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Nov 27, 2016 09:17pm
His all promises has been a jumla as per his own right hand. He always utters nonsense. The demonitization was done to help the bank fill their pocket who have gone bankrupt due to lots of NPA( non performing Assets). The big defaulters loans have been written off which means the defaulters have to fear less . Over 70+ people have died due to this senseless demonitization without having any homework. He just went on TV and uttered without knowing the consequences. Today the farmers, small businessmen are helpless. They can't withdraw their own hard-earned money from the bank as this man has allowed only 2500 rupees can be withdrawn from the account in one day.Almost 300 million people are living below poverty lines and this man is uttering them to do cashless payment . By the way they all already cashless due to this brainless move. Everybody want a surgical strike on black money but this move is hurting the comman man rather than the targeted people.
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Nov 27, 2016 11:57pm
Will never work!!! despite technology and enthusiasm, still very difficult ,almost impossible to make it work!!! People, especially poor and villagers are not yet in the electronic net,
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Nov 28, 2016 12:54am
@Sohail Khan they can use cash....
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Nov 28, 2016 03:02am
People have to change with the times. For last forty years I have been in America and do not Cary more than 50 dollars in my wallet.All transaction is done paperless and 99percent of populations operate this way in the west. Modi has vision and hope people follow this.
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Nov 28, 2016 05:23am
Everyday is not Sunday. PM Modi demonetization sermon failed badly,it hurt the poor people,and people living in villages,illiterate people,besides the funds of Mandirs,and shrines,got rotten.All the good he earned gone away in one go.The poverty level will fall further, and hunger will grow. Tax collection will subside.The affects of demonetization will be felt like after shocks for a long time.
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Nov 28, 2016 07:26am
@Sohail Khan its not about mobile phone. It is to do with bank account and debit card
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Nov 28, 2016 12:01pm
he thinks he is smart and fooled a billion people to beleive in him. it is a stupid selfish move that has made life of millions miserable. instead of doing the hard work of cathcing the corrupt he has taken the easiet path at the expense of poor people.
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Nov 28, 2016 04:40pm
@sanak
this is not an easiest path my friend, it may turn political suicide to Modi if it fails. All are affected that does not mean there is a scary situation. Majority of Indians are supporting this move. Its matter of another 10-15 days, normalcy will be back.
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Nov 28, 2016 09:29pm
@all dawn readers ....no internet require for money transfer / transect. Pay or transfer money directly through USSD Code (*99#) from one A/c to another A/c for both smart or non smart mobile user without internet in India very easy and secure.
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