Govt to soon allow cash deposit, fund transfer through Digi Pay
New Delhi: The government will soon roll out cash deposit facility through Digi Pay, an Aadhaar linked biometric-based payment system used by village level entrepreneurs (VLEs) for digital payments.
Till now, only balance enquiry, withdrawal facility and point-of-sale payments were possible through Digi Pay.
The VLEs offer a variety of services under the government’s common services centers (CSC) scheme to people in rural areas.
“In a week’s time we will add cash deposits and fund transfer facility to enable banking without being a formal bank. The integration process is on,” said Dinesh Tyagi, chief executive officer, CSC e-governance services in the ministry of electronics and information technology, in an interview with Mint.
Deposit as a facility was available on Aadhaar Pay but was not used extensively because of technical glitches but now the process has been streamlined and we will be launching it soon, he said.
The move is aimed at transforming the banking experience for rural India and to bring them into the ambit of digital payments.
“Not allowing the facility to a person who is allowed to withdraw was putting restriction on the ability to do transactions effectively. Once the person has deposited money into the account he/she can use it to make digital payments. The dependence on cash from bank to carry out transactions will reduce once this facility is introduced,” said Tyagi.
For people in the villages it becomes very difficult to go to a bank to deposit small amounts of money. These villagers can instead go to a VLE deposit the money to whichever bank account they have which is linked to their Aadhaar number and get a receipt, he added.
“Even in an ATM, one can deposit money only of that particular bank account but such a restriction won’t be present here. It is a revolutionary step from banking perspective.”
In the initial phase, each banking correspondent or VLE will be allowed to accept deposits up to Rs500,000 per day.
The government’s push for digital and cashless transactions peaked after demonetization, and led to the roll out of a slew of payments apps—one of them being Digi Pay, an Aadhaar-linked payments app, that is currently being used by 140,000 CSC centers including VLEs, across the country.
Currently, more than 40 banks support Aadhaar-based payments, according to the National Payments Corporation of India (NPCI) website which has developed Digi Pay.
- Xi Jinping warns of severe challenges for China as party Congress opens
- Twitter tries to crack down on harassing, abusive tweets
- Opening bell: Asian markets open higher, Ultratech, Airtel in news
- Wipro’s hopes of recovery are looking like a pipe dream
- Bajaj Auto’s sales need to pick up speed to sustain rich valuation