Making the transition to a cashless economy
India has one of the highest cash-to-gross-domestic product ratios
It is an iron law of public policy that established players create obstacles to innovations that threaten them. One such response could be building up in the financial system. This newspaper reported on Monday that Indian banks are making it difficult for digital wallets issued by private sector companies to be used on the respective bank websites. It could be restrictions on using bank accounts to refill digital wallets or a lack of access to payment gateways. Regulators will have to take a tough stand against such rent-seeking behaviour by the banks.