Post Demonetization, One question came into everyone mind, What will be the alternative to Cash. If One will not keep cash then How they will operate.
First Alternative comes into mind is Digital Banking. Digital Banking means banking on internet via Mobile Phones and Desktop. Almost all banks provide Mobile applications and website for Desktop to do all kind of Banking you want.
But for vast and diversified Nation like India where there is still huge Digital and Economic Inequality you can’t give Digital Banking as alternative as it will only give solution to 30 crore people and to cover another 100 crore it will take at least 10 years more.
So Question remains the same – What will be the alternative to Cash ?
The impossible solution for Nation like India is here – Unified Payment Interface ( UPI ). Unified Payment Interface is a system that allows money transfer between any two bank accounts by using a mobile phone.
30 PSB and foreign banks have joined NPCI created Unified Payment Interface.
The UPI system has already started pilot projects for funds transfer and customers of these 30 banks can download the app from Google Play Store on their android phones.
The UPI app enables customers to make online as well as offline payment to merchants from their bank accounts, without typing card or net banking/wallet details and IFSC code.
The 30-banks already participating in the pilot include State Bank Of India, HSBC Bank, Axis Bank, ICICI Bank, HDFC Bank, and Punjab National Bank.
The transactions that can be done through the UPI app include bills, merchant payments and remittances.
During the last six years, NPCI has grown multi-fold from 2 million transactions a day to 25 million now.
I hope Government reach out to poor and aware them about the benefit of UPI and as we know India have more than 120 crore Mobile Phones Now, Hence It is the most probable solution to fit country like India and make it 100% financially inclusive nation.