e-Transactions need incentives, encouragement

New Delhi, Nov 8: The claim of govt about digital transactions picking up much in public is not so encouraging. at the time of demonetization for about 3 or 4 months public, small business people took the advantages of e-transactions. Then charges on such dealings were waived. Now when cash is available why should one spend for e-charges in the logic with the public. Nowadays ATM transactions also are somewhat cumbersome. So many are not functioning as before. So people are drawing bigger amounts and keeping cash handy.

Some date gathered by agencies shows e-transactions are somewhat 0.7% of less than that of Dec 2016. The value of transactions on mobile wallets has doubled but banks have kept away stand a low wallet. A report from RBI shows e-wallets Paytm, Freecharge, Mobikwik, Citrus pay, which recorded Rs.21 billions in Jan 2017 could come down to Rs.19 billion in Feb 2017. The Customer base in some e-wallets increased but transactions were not proportional.The bank transactions like online NEFT and RTGS are charged by many banks. This is somewhat disadvantageous for the public to use the methods. If banks remove charges or scaledown charges considerably then people may prefer more.

The e- payment mode was followed by so many, from vegetable purchases, milk, groceries, medical bills all were paid through it at the time of demonetization. Nowadays so many people are not interested. recently HDFC bank cash transfer online has started free transactions. If other banks also follow this procedure it will have a push more. Certain bill payments like telephone, bus & rail tickets, electricity also based on charges so it is not encouraging the habit.

Some house owners refuse to accept online payments because they do not want the actual amount recorded. This type of disadvantages is also there. For any procedure to attract public must have an incentive and not a force for a small period. The misuse of money dealings can be minimized by e-transactions. That must be based on day to day necessities and availability of opportunities.