India&#39;s telecom subscriber base, mobile and landline combined, touched the 1.18 billion mark at the end of February 2017, growing 1.17 per cent over the previous month, according to regulator Telecom Regulatory Authority of India (TRAI).

The market growth was propelled by the addition of 13.75 million mobile users during the month. The demand for once- popular landline phone has been dwindling as the cheap mobile handsets, coupled with falling tariffs and freebies, have led to an explosion in cellphone connectivity.

Over the past few months, operators including newcomer Reliance Jio and incumbents like Bharti Airtel and Vodafone have been doling out attractive offers and unleashing high- decibel marketing campaign to woo customers.

&quot;The number of telephone subscribers in India increased from 1,174.80 million at the end of January 2017 to 1,188.5 million at the end of February 2017, showing a monthly growth rate of 1.17 per cent,&quot; as per the data byTRAI.

The urban connectivity went up to 692.15 million in February-end, from 681.15 million in January-end, a growth of over 1.6 per cent.

The pace of growth of rural connectivity was slower at 0.56 per cent. Rural telecom users increased to 496.39 million from 493.65 million during the same period.

The Indian telecom market the second-largest in the world after China in terms of subscriber base added 13.75 million mobile customers in February. This pushed up the total mobile subscriber base to 1.16 billion.

The wireline connections which have been losing sheen over the last few years remained flat with subscriber base stagnant at about 24.35 million.

Lesser number of people sought network port outs in February compared to the previous month. Nearly 5.6 million subscribers submitted requests for mobile number porting in February, compared to 6.24 million placing such request in January this year.

&quot;In February 2017, 5.67 million subscribers submitted their requests for mobile number portability (MNP),&quot; TRAI said.

With this, the cumulative requests increased from 261.06 million at the end of January 2017 to 266.73 million at the end of February since implementation of this facility nearly seven years ago.

Cellular industry body COAI Director General Rajan Mathews believes that the MNP numbers need to be seen in the broader context of the overall subscriber base of India and not on a standalone basis.

&quot;In some markets like the US and Europe, the MNP ratio is nearly 3-5 per cent of the overall base whereas in India, the number is much smaller,&quot; he said.

The facility of number portability allows mobile subscribers to retain their numbers when they relocate from one service area to another or wish to change their operator.

(PTI)

The market growth was propelled by the addition of 13.75 million mobile users during the month

India's telecom subscriber base, mobile and landline combined, touched the 1.18 billion mark at the end of February 2017, growing 1.17 per cent over the previous month, according to regulator Telecom Regulatory Authority of India (TRAI). The market growth was propelled by the addition of 13.75 million mobile users during the month. The demand for once- popular landline phone has been dwindling as the cheap mobile handsets, coupled with falling tariffs and freebies, have led to an explosion in cellphone connectivity. Over the past few months, operators including newcomer Reliance Jio and incumbents like Bharti Airtel and Vodafone have been doling out attractive offers and unleashing high- decibel marketing campaign to woo customers. "The number of telephone subscribers in India increased from 1,174.80 million at the end of January 2017 to 1,188.5 million at the end of February 2017, showing a monthly growth rate of 1.17 per cent," as per the data byTRAI. The urban connectivity went up to 692.15 million in February-end, from 681.15 million in January-end, a growth of over 1.6 per cent. The pace of growth of rural connectivity was slower at 0.56 per cent. Rural telecom users increased to 496.39 million from 493.65 million during the same period. The Indian telecom market the second-largest in the world after China in terms of subscriber base added 13.75 million mobile customers in February. This pushed up the total mobile subscriber base to 1.16 billion. The wireline connections which have been losing sheen over the last few years remained flat with subscriber base stagnant at about 24.35 million. Lesser number of people sought network port outs in February compared to the previous month. Nearly 5.6 million subscribers submitted requests for mobile number porting in February, compared to 6.24 million placing such request in January this year. "In February 2017, 5.67 million subscribers submitted their requests for mobile number portability (MNP)," TRAI said. With this, the cumulative requests increased from 261.06 million at the end of January 2017 to 266.73 million at the end of February since implementation of this facility nearly seven years ago. Cellular industry body COAI Director General Rajan Mathews believes that the MNP numbers need to be seen in the broader context of the overall subscriber base of India and not on a standalone basis. "In some markets like the US and Europe, the MNP ratio is nearly 3-5 per cent of the overall base whereas in India, the number is much smaller," he said. The facility of number portability allows mobile subscribers to retain their numbers when they relocate from one service area to another or wish to change their operator. (PTI)

Telecom subscriber base in India grows to 1.18 bn in Feb: TRAI

To push digital transactions in India, finance minister Arun Jaitley had in his budget said the government would penalise any cash transaction above Rs 3 lakh.&nbsp;

The government now wants to push that limit down to Rs 2 lakh.

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Govt has proposed that limit of Rs 3 lakhs for cash transaction beyond which it is illegal, be reduced to Rs 2 lakhs: H Adhia, Revenue Secy <a href="https://t.co/EnJQFJSgJl">pic.twitter.com/EnJQFJSgJl</a>
&mdash; ANI (@ANI_news) <a href="https://twitter.com/ANI_news/status/844161437417140224">March 21, 2017</a></blockquote>
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Any cash payment over that will now be taxed at a 100 per cent.&nbsp;

The announcement was made by revenue secretary Hasmukh Adhia.&nbsp;

Adhia, a Gujarati, was at the time identified by media reports as having worked out the modalities of the demonetisation rollout.

The government had said that demonetisation, announced by Prime Minister Modi on November 8, had, among other things, been meant to push digital payments.

It is Prime Minister Modi&#39;s belief that cash is expensive -- he has said so in speeches -- and that moving to digital payments will help India modernise faster.&nbsp;

(WION)

In his budget, Arun Jaitley had said the upper limit would be capped at Rs 3 lakh

To push digital transactions in India, finance minister Arun Jaitley had in his budget said the government would penalise any cash transaction above Rs 3 lakh. The government now wants to push that limit down to Rs 2 lakh. Govt has proposed that limit of Rs 3 lakhs for cash transaction beyond which it is illegal, be reduced to Rs 2 lakhs: H Adhia, Revenue Secy pic.twitter.com/EnJQFJSgJl — ANI (@ANI_news) March 21, 2017 × Any cash payment over that will now be taxed at a 100 per cent. The announcement was made by revenue secretary Hasmukh Adhia. Adhia, a Gujarati, was at the time identified by media reports as having worked out the modalities of the demonetisation rollout. The government had said that demonetisation, announced by Prime Minister Modi on November 8, had, among other things, been meant to push digital payments. It is Prime Minister Modi's belief that cash is expensive -- he has said so in speeches -- and that moving to digital payments will help India modernise faster. (WION)

Govt now wants to cap cash transactions at Rs 2 lakh

Kerala finance minister Thomas Issac announced Friday that free internet connections will be provided to 20 lakh poor families, to&nbsp;others at subsidised rates.

Calling it a decisive step towards eliminating the digital divide, Issac said, &ldquo;Kerala is poised to become one of the rare regimes where internet facility will be the right of a citizen. This will provide hindrance-free access to government and non-government services including educational, health, social welfare and entertainment.&rdquo;

&ldquo;It is estimated that by 2017-18 almost all government transactions will become IT-based. Thus, the right for basic internet facility will become a prerequisite for providing civic services universally through electronic medium,&rdquo; he added.

HIs comments were made during his budget 2017-18 speech.&nbsp;

Issac said internet would be provided to every citizen via a fibre-optic network called K Phone.

The K phone network will be similar to the KSEB (Kerala State Electricity Board) network.

&ldquo;Within 18 months, the internet gateway would be set up through the K phone network at a cost of Rs 1,000 crore,&quot; the former economist said.

The state government also plans to set up wi-fi transmission centres at Akshaya Centres, Friends Janasevana Kendras, government offices, libraries, and public places.

(WION)

Free connections will be given to 20 lakh poor families, to others at subsidised rates

Kerala finance minister Thomas Issac announced Friday that free internet connections will be provided to 20 lakh poor families, to others at subsidised rates. Calling it a decisive step towards eliminating the digital divide, Issac said, “Kerala is poised to become one of the rare regimes where internet facility will be the right of a citizen. This will provide hindrance-free access to government and non-government services including educational, health, social welfare and entertainment.” “It is estimated that by 2017-18 almost all government transactions will become IT-based. Thus, the right for basic internet facility will become a prerequisite for providing civic services universally through electronic medium,” he added. HIs comments were made during his budget 2017-18 speech. Issac said internet would be provided to every citizen via a fibre-optic network called K Phone. The K phone network will be similar to the KSEB (Kerala State Electricity Board) network. “Within 18 months, the internet gateway would be set up through the K phone network at a cost of Rs 1,000 crore," the former economist said. The state government also plans to set up wi-fi transmission centres at Akshaya Centres, Friends Janasevana Kendras, government offices, libraries, and public places. (WION)

Kerala says internet is a right, will provide connections to everybody

Last week&#39;s three-day Nasscom Leadership Forum actually had a funny start with key speaker Mukesh Ambani saying Trump&rsquo;s protectionist measures could be a boon in disguise for India&rsquo;s IT companies. In a way, it is ironic that the point of view of the very organiser of the forum has been put through a shredder.

&nbsp;

&ldquo;The domestic IT industry can focus on solving problems right here, which is a huge market,&rdquo; India&rsquo;s richest man told the gathering. Nasscom has already lowered its revenue growth estimate for the industry to 8-10 per cent from the 10-12 per cent figure it had predicted last February.

&nbsp;

More than 65 per cent of the Indian IT industry&rsquo;s $155 billion revenue comes from the US. But then, why is Mukesh Ambani so hopeful?

&nbsp;

I have tried my best to find a logical reason behind this and, frankly speaking, I do not see India&rsquo;s private sector to have work or the purse to meet a $100 billion shortfall if push comes to shove.

&nbsp;

However, India&rsquo;s Unique Identification (UID) project, more commonly known to Indians as the Aadhar programme, and Ambani&rsquo;s &ldquo;solving problems&rdquo; quip may act as pointers as to how the Indian IT industry may survive if the American and post-Brexit European workflow takes a nosedive.&nbsp;

&nbsp;

For this, one has to take note of the unbroken continuity of the fundamental economic roadmap that the country has embarked upon for the last decade or so. In this light, the policies of the ruling BJP government led by Prime Minister Narendra Modi do not really differ with those of the previous UPA government that was headed by Manmohan Singh.

&nbsp;

While Modi has been widely panned by critics for his proximity to big businesses and the alleged largesse the latter have enjoyed from this relationship, I think the 2010 Budget speech in Parliament delivered by then finance minister Pranab Mukherjee, who is now the President of the country, has not received enough scrutiny.

&nbsp;

The part of the speech that I refer to above reads: &ldquo;With development and economic reforms, the focus of economic activity has shifted towards the non-governmental actors, bringing into sharper focus the role of government as an enabler. An enabling government does not try to deliver directly to the citizens everything that they need. Instead it creates an enabling ethos so that individual enterprise and creativity can flourish.&rdquo;

&nbsp;

The outsourcing of Project Aadhar was possibly the first step towards realisation of this plan. Various private companies collected biometric data of residents of India. It was originally supposed to do away with multiple identity silos and duplication of cost and efforts. Its stated purpose was to make life easier for the Indian people, as Nandan Nilekani, former chairman of the Unique Identification Authority of India (UIDAI), told me in an interview way back in 2010.

&nbsp;

The project rolled over questions pertaining to infringement of civil liberties, encroachment into personal space and the lack of data protection laws such as the United States Federal Privacy Statute or the European Directive on Data Protection. It was argued that lack of identity was the central roadblock that impeded the poor and the marginalised&rsquo;s access to benefits and subsidies.

&nbsp;

Seven years down, the project has already cost the country <a href="https://uidai.gov.in/new/about-uidai/about-uidai/financials.html">Rs 8277.17 crore ($1.24 billion)</a> in cumulative expenditure and, instead of doing away with duplication of cost and efforts, has added yet another identity silo. And a look at the cost break-up will tell anyone who has gained most from the programme.

&nbsp;

If farmers&rsquo; suicide <a href="http://www.rediff.com/news/column/p-sainath-how-states-fudge-the-data-on-farmer-suicides/20140801.htm">figures</a> are any indicator, India&rsquo;s poor have <a href="http://www.thehindu.com/data/indias-new-farm-suicides-data-myths-and-facts/article7461095.ece">not benefitted</a> from Project Aadhar.

On the other hand, Aadhar has helped Reliance&rsquo;s Jio to add a million subscribers a day, as mentioned by Ambani at the Assocham meet.

I have a strong feeling that the push for &ldquo;Digital India&rdquo; and a digital economy is going to act as the safety valve for the IT industry in case the American dream falls apart. If not, it is going to add substantial revenue to the balance sheet. Only around <a href="http://www.internetlivestats.com/internet-users/india/">35 per cent</a> of Indians had access to the Internet till 2016.

&nbsp;

That leaves plenty of avenues in terms of setting up and upgrade of infrastructure, setting up backends and training the vast mass who have lived on the dark side of the digital divide.

&nbsp;

Whether that comes in the form of private-public partnership or simply outsourced contracts or a mix of both is for time to tell. But it is clear that in crucial areas of deliverance that affects real people, the government has taken a clear backseat, creating an enabling atmosphere for&nbsp;corporate takeover.

&nbsp;

In this light, Mukesh Ambani&rsquo;s optimism is clearly not misplaced but calibrated on the symbiotic relationship between India&rsquo;s political class and the industry.

&nbsp;

&nbsp;

The Indian government has taken a clear backseat in crucial areas of deliverance, creating an enabling atmosphere for corporate takeover

Last week's three-day Nasscom Leadership Forum actually had a funny start with key speaker Mukesh Ambani saying Trump’s protectionist measures could be a boon in disguise for India’s IT companies. In a way, it is ironic that the point of view of the very organiser of the forum has been put through a shredder. “The domestic IT industry can focus on solving problems right here, which is a huge market,” India’s richest man told the gathering. Nasscom has already lowered its revenue growth estimate for the industry to 8-10 per cent from the 10-12 per cent figure it had predicted last February. More than 65 per cent of the Indian IT industry’s $155 billion revenue comes from the US. But then, why is Mukesh Ambani so hopeful? I have tried my best to find a logical reason behind this and, frankly speaking, I do not see India’s private sector to have work or the purse to meet a $100 billion shortfall if push comes to shove. However, India’s Unique Identification (UID) project, more commonly known to Indians as the Aadhar programme, and Ambani’s “solving problems” quip may act as pointers as to how the Indian IT industry may survive if the American and post-Brexit European workflow takes a nosedive. For this, one has to take note of the unbroken continuity of the fundamental economic roadmap that the country has embarked upon for the last decade or so. In this light, the policies of the ruling BJP government led by Prime Minister Narendra Modi do not really differ with those of the previous UPA government that was headed by Manmohan Singh. While Modi has been widely panned by critics for his proximity to big businesses and the alleged largesse the latter have enjoyed from this relationship, I think the 2010 Budget speech in Parliament delivered by then finance minister Pranab Mukherjee, who is now the President of the country, has not received enough scrutiny. The part of the speech that I refer to above reads: “With development and economic reforms, the focus of economic activity has shifted towards the non-governmental actors, bringing into sharper focus the role of government as an enabler. An enabling government does not try to deliver directly to the citizens everything that they need. Instead it creates an enabling ethos so that individual enterprise and creativity can flourish.” The outsourcing of Project Aadhar was possibly the first step towards realisation of this plan. Various private companies collected biometric data of residents of India. It was originally supposed to do away with multiple identity silos and duplication of cost and efforts. Its stated purpose was to make life easier for the Indian people, as Nandan Nilekani, former chairman of the Unique Identification Authority of India (UIDAI), told me in an interview way back in 2010. The project rolled over questions pertaining to infringement of civil liberties, encroachment into personal space and the lack of data protection laws such as the United States Federal Privacy Statute or the European Directive on Data Protection. It was argued that lack of identity was the central roadblock that impeded the poor and the marginalised’s access to benefits and subsidies. Seven years down, the project has already cost the country Rs 8277.17 crore ($1.24 billion) in cumulative expenditure and, instead of doing away with duplication of cost and efforts, has added yet another identity silo. And a look at the cost break-up will tell anyone who has gained most from the programme. If farmers’ suicide figures are any indicator, India’s poor have not benefitted from Project Aadhar. On the other hand, Aadhar has helped Reliance’s Jio to add a million subscribers a day, as mentioned by Ambani at the Assocham meet. I have a strong feeling that the push for “Digital India” and a digital economy is going to act as the safety valve for the IT industry in case the American dream falls apart. If not, it is going to add substantial revenue to the balance sheet. Only around 35 per cent of Indians had access to the Internet till 2016. That leaves plenty of avenues in terms of setting up and upgrade of infrastructure, setting up backends and training the vast mass who have lived on the dark side of the digital divide. Whether that comes in the form of private-public partnership or simply outsourced contracts or a mix of both is for time to tell. But it is clear that in crucial areas of deliverance that affects real people, the government has taken a clear backseat, creating an enabling atmosphere for corporate takeover. In this light, Mukesh Ambani’s optimism is clearly not misplaced but calibrated on the symbiotic relationship between India’s political class and the industry.

If US orders stop, India's IT can count on the political class to bail it out

Over the past few years, the Indian government has been pushing its Digital India initiative. Added to that, the government&rsquo;s demonetisation drive has resulted in a greater need for high-speed and deeper Internet penetration in the country. 
&nbsp; 
Latest figures released by the Telecom Regulatory Authority of India show that broadband connections in the country grew by just a little over 18 percent at the end of September 2016. 
&nbsp; 
India today has 367.46 million Internet connections, with only 190 million of these being broadband connections. 
&nbsp; 
Click on the graph below for more.

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Telecom Regulatory Authority of India data shows India has only 190 million broadband Internet connections

Over the past few years, the Indian government has been pushing its Digital India initiative. Added to that, the government’s demonetisation drive has resulted in a greater need for high-speed and deeper Internet penetration in the country. Latest figures released by the Telecom Regulatory Authority of India show that broadband connections in the country grew by just a little over 18 percent at the end of September 2016. India today has 367.46 million Internet connections, with only 190 million of these being broadband connections. Click on the graph below for more.

Interactive: Digital India dream has a long way to go

&ldquo;The recommendations aim to strengthen the ecosystem to promote digital payments with a focus on reaching financially and socially excluded groups,&rdquo; the report said.

The committee said that it had studied the domestic scenario and drew on the best practices in the developed world in understanding the trajectory of development in payments industry and various interventions undertaken to promote digital payments.

Here are the 13 recommendations by the committee:

1. Make regulation of payments independent from the function of central banking:

The Committee weighed two options on how best this be implemented: (i) create a&nbsp;new payments regulator, or (ii) make the current Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) within RBI more independent. While both&nbsp;options would serve the intended objective, the Committee recommends that the BPSS be given an independent status which it today lacks by being a sub-committee of the Central Board of RBI. The statutory status of the new Board, within the overall structure of RBI, called Payments Regulatory Board (PRB) should be enshrined in the Payments and Settlement Systems Act, 2007 &ndash; Implementation by MoF: Finalisation of structure of PRB may be done in 30 days.

&nbsp;

2. Update the current Payments and Settlement Systems Act, 2007:

To include explicit mandate for (i) competition and innovation, (ii) open access and interoperability, (iii) consumer protection including penalties and independent appeal mechanism, (iv) regulations on systemic risks, (v) data protection and security and (v) a process of regulatory governance. The Committee has provided drafting instructions for the new Payments and Settlement Systems Act and this may be initiated at the earliest &ndash; Implementation by MoF: Finalisation of amendment bill and placing the same before the Union Cabinet may be done 30 days.

&nbsp;

3. Promote digital payments and receipts within Government:&nbsp;

By (i) adopting digital payments for all its needs, (ii) withdraw all charges levied by Government department and utilities on digital payments and bear the cost of such transactions, (iii) mandate government departments and agencies to provide option to consumers to pay digitally, (iv) incentivise consumers to make payments (including payment of fines and penalties) to Government electronically by giving a discount or cash back, (v) enable consumers to make payments (including taxes) to Government through suitable digital means like cards and wallets, (vi) special emphasis to promote digital payments for recurring low value transactions and (vii) reduce custom duties on payments acceptance equipment.&nbsp;Implementation agencies listed in recommendation section. Steps may be initiated in 30 days and reviewed fortnightly.

4. Create a fund proposed as DIPAYAN from savings generated from cash-less transactions to expand digital payments. Build audit capability to measure savings &ndash; Implementation by MoF, Ministry of Social Justice, Ministry of tribal Affairs and Ministry of Development of North Eastern Region. A time period of 60 days may be considered for initiating implementation by user agencies.

5. Create a ranking and reward framework to encourage and recognise government departments, State Governments, districts and panchayats and other market participants who lead the efforts on enabling digital payments &ndash; Implementation by NITI Aayog along with State Governments. Development of the framework maybe achieved in 60-90 days.

6. Implement other measures to promote digital payments including (i) promoting Aadaar based eKYC and paperless authentication (including where Permanent Account Number (PAN) has not been obtained), (ii) providing disincentives for usage of cash and (iii) creating awareness and transparency on cost of cash &ndash; Implementation by MoF, UIDAI, CBDT, Telecom Regulatory Authority of India (TRAI), Ministry of HRD, DoPT and RBI. May be initiated over 60-90 days.

7. Consider outsourcing the function of operation of payment systems like Real Time Gross Settlement (RTGS) and National Electronic Fund Transafer (NEFT). While moving RTGS to a separate operator is not envisaged for now &ndash; a cost benefit analysis may be initiated as an initial step. Overtime, multiple payment system operators should be encouraged and payment systems should be operated by market entities &ndash; Consultation paper may be released over 180 days.

8. Upgrade payment systems like RTGS and NEFT to operate on 24x7 basis in due course of time. RBI should progressively increase their timings over due course &ndash; A consultation paper may be released over 90 days.

9. Allow non-bank PSPs to directly access payment systems &ndash; Regulations may be released for consultation over 60 days.

10. Require NPCI, to be payments centric in its ownership and objectives. Ownership of NPCI should be diversified widely to include more banks and include non-banks. Its Board should be represented by majority public interest directors and include shareholder directors. NPCI should be allowed to function independently &ndash; Regulations may be released for consultation over 60 days.

11. Enable payments to be inter-operable between bank and non-banks as well as within non-banks. Mobile number and Aadhaar based fully inter-operable payments should be prioritised &ndash; NPCI may enable this on its platforms over 60 days.

12. Create a formal mechanism to enable innovations and new business models &ndash; Consultation paper may be released over 90-120 days.&nbsp;

13. Implement other measures to promote digital payments including issuing regulations on Systemically Important Payment System (SIPS) and Systemically Important Financial Institutions (SIFIs), growing acceptance network, enabling faster and cheaper credit and promoting cross border payments &ndash; Regulations may be released for consultation over 60-180 days. The RBI may within two weeks of releasing this Report, develop a comprehensive metric to quantitatively measure and monitor the enhancement of digital payment services in India.

(To learn more read <a href="http://www.zeebiz.com/">zeebiz.com</a>)

The committee to review the framework related to digital payments presented its report to the government Tuesday

“The recommendations aim to strengthen the ecosystem to promote digital payments with a focus on reaching financially and socially excluded groups,” the report said. The committee said that it had studied the domestic scenario and drew on the best practices in the developed world in understanding the trajectory of development in payments industry and various interventions undertaken to promote digital payments. Here are the 13 recommendations by the committee: 1. Make regulation of payments independent from the function of central banking: The Committee weighed two options on how best this be implemented: (i) create a new payments regulator, or (ii) make the current Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) within RBI more independent. While both options would serve the intended objective, the Committee recommends that the BPSS be given an independent status which it today lacks by being a sub-committee of the Central Board of RBI. The statutory status of the new Board, within the overall structure of RBI, called Payments Regulatory Board (PRB) should be enshrined in the Payments and Settlement Systems Act, 2007 – Implementation by MoF: Finalisation of structure of PRB may be done in 30 days. 2. Update the current Payments and Settlement Systems Act, 2007: To include explicit mandate for (i) competition and innovation, (ii) open access and interoperability, (iii) consumer protection including penalties and independent appeal mechanism, (iv) regulations on systemic risks, (v) data protection and security and (v) a process of regulatory governance. The Committee has provided drafting instructions for the new Payments and Settlement Systems Act and this may be initiated at the earliest – Implementation by MoF: Finalisation of amendment bill and placing the same before the Union Cabinet may be done 30 days. 3. Promote digital payments and receipts within Government: By (i) adopting digital payments for all its needs, (ii) withdraw all charges levied by Government department and utilities on digital payments and bear the cost of such transactions, (iii) mandate government departments and agencies to provide option to consumers to pay digitally, (iv) incentivise consumers to make payments (including payment of fines and penalties) to Government electronically by giving a discount or cash back, (v) enable consumers to make payments (including taxes) to Government through suitable digital means like cards and wallets, (vi) special emphasis to promote digital payments for recurring low value transactions and (vii) reduce custom duties on payments acceptance equipment. Implementation agencies listed in recommendation section. Steps may be initiated in 30 days and reviewed fortnightly. 4. Create a fund proposed as DIPAYAN from savings generated from cash-less transactions to expand digital payments. Build audit capability to measure savings – Implementation by MoF, Ministry of Social Justice, Ministry of tribal Affairs and Ministry of Development of North Eastern Region. A time period of 60 days may be considered for initiating implementation by user agencies. 5. Create a ranking and reward framework to encourage and recognise government departments, State Governments, districts and panchayats and other market participants who lead the efforts on enabling digital payments – Implementation by NITI Aayog along with State Governments. Development of the framework maybe achieved in 60-90 days. 6. Implement other measures to promote digital payments including (i) promoting Aadaar based eKYC and paperless authentication (including where Permanent Account Number (PAN) has not been obtained), (ii) providing disincentives for usage of cash and (iii) creating awareness and transparency on cost of cash – Implementation by MoF, UIDAI, CBDT, Telecom Regulatory Authority of India (TRAI), Ministry of HRD, DoPT and RBI. May be initiated over 60-90 days. 7. Consider outsourcing the function of operation of payment systems like Real Time Gross Settlement (RTGS) and National Electronic Fund Transafer (NEFT). While moving RTGS to a separate operator is not envisaged for now – a cost benefit analysis may be initiated as an initial step. Overtime, multiple payment system operators should be encouraged and payment systems should be operated by market entities – Consultation paper may be released over 180 days. 8. Upgrade payment systems like RTGS and NEFT to operate on 24x7 basis in due course of time. RBI should progressively increase their timings over due course – A consultation paper may be released over 90 days. 9. Allow non-bank PSPs to directly access payment systems – Regulations may be released for consultation over 60 days. 10. Require NPCI, to be payments centric in its ownership and objectives. Ownership of NPCI should be diversified widely to include more banks and include non-banks. Its Board should be represented by majority public interest directors and include shareholder directors. NPCI should be allowed to function independently – Regulations may be released for consultation over 60 days. 11. Enable payments to be inter-operable between bank and non-banks as well as within non-banks. Mobile number and Aadhaar based fully inter-operable payments should be prioritised – NPCI may enable this on its platforms over 60 days. 12. Create a formal mechanism to enable innovations and new business models – Consultation paper may be released over 90-120 days. 13. Implement other measures to promote digital payments including issuing regulations on Systemically Important Payment System (SIPS) and Systemically Important Financial Institutions (SIFIs), growing acceptance network, enabling faster and cheaper credit and promoting cross border payments – Regulations may be released for consultation over 60-180 days. The RBI may within two weeks of releasing this Report, develop a comprehensive metric to quantitatively measure and monitor the enhancement of digital payment services in India. (To learn more read zeebiz.com)

Watal Committee on Digital Payments: Here are 13 recommendations

A month after the demonetisation decision, people across the metropolis and adjoining areas are still struggling to lay hands on cash, adversely affecting their monthly payments and businesses.

The main reason behind these hardships, according to people PTI spoke to, are the dysfunctional ATMs that continue to remain dry even a month after the government scrapped notes of Rs 500 and Rs 1000 on November 8.

&quot;Prime Minister Narendra Modi is appealing to everyone to adopt cashless methods to make small or big deals. Going by this, why do we need so many ATMs across the country? Uproot them. These are not useful anyway. These ATMs have gone cashless,&quot; said an irked Kalpesh Jain, a cloth trader in suburban Ghatkopar here.

Even this morning, Mumbaikars and people living on the city outskirts were seen queueing up outside banks and ATMs to meet their monthly payments. Many were upset about banks also refusing payments to customers due to cash shortage.

Waris Sheikh, a professional working in Lower Parel area said, &quot;Since last two days, a bank branch in the Kamla Mill compound has stopped giving cash. There is a board outside the office saying we are taking deposits only.&quot;

A homemaker from neighbouring Thane district, Vimala Tripathi, who also sounded frustrated, said, &quot;One month has gone by but there has been no significant improvement in the circulation of money. We still have to stand in long queues in banks and ATMs where there is no cash.&quot;

Another homemaker, Sunita from suburban Bhayandar, said, &quot;The latest gift by the government is the Rs 2000 note which cannot be used to buy milk, bread, fruits or vegetables. One month&#39;s time was enough to wipe out the shortage of lower denomination notes in the market&quot;.

Traders also complained that their business has suffered by over 40 to 50 per cent as demonetisation has badly hit the purchasing power of the people, even as the&nbsp;government continues to make a push for cashless options.

A restaurant owner in Ghatkopar said, &quot;Unfortunately, people have not been so enthusiastic to pay by Paytm or Freecharge or whatever. Many of them come at my restaurant with a Rs 2000 note, whom we have to turn away.&quot;

However, there are some who are still hopeful that all these troubles would end soon as promised by Modi who had urged people to cooperate with the government till December 31.

&quot;Modiji had sought 50 days, and now 30 days have passed. We should give him 20 more days and hopefully wait for the situation to improve. But the sad part is that even after 30 days there is hardly any improvement,&quot; a tea-seller from suburban Andheri said.

(PTI)

The main reason behind the cash shortage are the dysfunctional ATMs that continue to remain dry

A month after the demonetisation decision, people across the metropolis and adjoining areas are still struggling to lay hands on cash, adversely affecting their monthly payments and businesses. The main reason behind these hardships, according to people PTI spoke to, are the dysfunctional ATMs that continue to remain dry even a month after the government scrapped notes of Rs 500 and Rs 1000 on November 8. "Prime Minister Narendra Modi is appealing to everyone to adopt cashless methods to make small or big deals. Going by this, why do we need so many ATMs across the country? Uproot them. These are not useful anyway. These ATMs have gone cashless," said an irked Kalpesh Jain, a cloth trader in suburban Ghatkopar here. Even this morning, Mumbaikars and people living on the city outskirts were seen queueing up outside banks and ATMs to meet their monthly payments. Many were upset about banks also refusing payments to customers due to cash shortage. Waris Sheikh, a professional working in Lower Parel area said, "Since last two days, a bank branch in the Kamla Mill compound has stopped giving cash. There is a board outside the office saying we are taking deposits only." A homemaker from neighbouring Thane district, Vimala Tripathi, who also sounded frustrated, said, "One month has gone by but there has been no significant improvement in the circulation of money. We still have to stand in long queues in banks and ATMs where there is no cash." Another homemaker, Sunita from suburban Bhayandar, said, "The latest gift by the government is the Rs 2000 note which cannot be used to buy milk, bread, fruits or vegetables. One month's time was enough to wipe out the shortage of lower denomination notes in the market". Traders also complained that their business has suffered by over 40 to 50 per cent as demonetisation has badly hit the purchasing power of the people, even as the government continues to make a push for cashless options. A restaurant owner in Ghatkopar said, "Unfortunately, people have not been so enthusiastic to pay by Paytm or Freecharge or whatever. Many of them come at my restaurant with a Rs 2000 note, whom we have to turn away." However, there are some who are still hopeful that all these troubles would end soon as promised by Modi who had urged people to cooperate with the government till December 31. "Modiji had sought 50 days, and now 30 days have passed. We should give him 20 more days and hopefully wait for the situation to improve. But the sad part is that even after 30 days there is hardly any improvement," a tea-seller from suburban Andheri said. (PTI)

Demonetisation: 30 days on, cash crunch still continues

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