New Delhi: The number of digital financial transactions made through UPI and Unstructured Supplementary Service Data (USSD) mode has grown exponentially by 3,574 per cent and 10,603 per cent respectively till January 18, according to MoS (electronics and IT), P.P. Chaudhary on Friday.
Even as to promote Aadhaar-based payment system, especially in rural pockets, UIDAI has sought “incentives” for shopkeepers using the biometric mode for digital transactions, in line with commission given by banks to business correspondents.
“If a merchant is using Aadhaar-enabled payment systems then he should be put on par with business correspondent and whatever facility and commission are available to the business correspondent, he should be paid on the same lines,” said UIDAI CEO, Ajay Bhushan Pandey.
Noting the current incentive for business correspondent is up to one per cent of the transaction value subject to a cap of Rs 15, Mr Pandey said where incentivising merchants is concerned banks could fix the modalities depending on transaction volumes.
Mr Pandey said that incentivising shopkeepers who adopt the biometric payment system would also “remove an extra layer” as consumers today approach banks, ATMs or business correspondents for withdrawal of money to purchase items such as ration.
Meanwhile, Mr Chaudhary said that the digital payment will generate a transparent economy and enhance direct and indirect tax collection. “We can assume there can be a rise of 25 per cent of the direct taxes and this money could be used in shoring up infrastructure to bridge the divide between rural and urban,” he said at an Assocham conference.
Mr Chaudhary said that currently about 74 crore debit and credit cards are being used, while about half a billion population is using the internet, there are 102 crore mobile phones, 110 crore Aadhaar and more than 20 crore Jan-Dhan accounts, so the complete ecosystem has already been put in place for using digital payment mode. He said that the Bhim app has witnessed several million downloads in the country in just a few days.
“With further updates of applications to be released in the coming few days, we expect it to become the mainstay for undertaking financial transactions throughout the economy sooner than envisaged earlier.”
