Digital India Leapfrog On!

By Nandita Singh

BENGALURU: Who could have imagined that the Government of India would play ICT industry disruptor with its 500 and 1000 rupee note demonetization move? The multi-pronged demonetization objective that is getting revealed week-after-week is creatively all-inclusive right from addressing terror, crime, black money to driving cashless India… Call it demonetization side effects if you will, Point of Sale (PoS) devices, e-Wallets and Unified Payment Interface (UPI) apps have received an unusual fillip that in regular course of events would have taken at least a couple more years to come to a critical mass.

The currency that ceased to be legal tender Nov 8 midnight onwards constituted 86% of the currency in circulation in the country, and over 90% of Indian economy functioned on cash transactions. Even though e-commerce has been prevalent in India since almost a decade now (Flipkart set up operations in 2007) over 70% of digital transactions continued to be ‘cash on delivery’ in 2016. Against this backdrop demonetization of two much-used currency notes led to shock, awe, severe hardship and disruption to the daily life of an ordinary citizen, especially those still unbanked and forced to adapt overnight. For those with access to digital money, a psychological barrier was definitely breached forcing them to look at alternative ways to transact.

In Modi’s scheme of things, apparently, policy-making needs to play fast and furious catch up. With digital transactions growing manifold, India might find it tough to handle the acceleration into digital financial ecosystem. Good thing is: the BJP-led government has roped in Nandan Nilekani, former chief of Unique Identification Authority of India (UIDAI), to share his expertise on a 13-member committee of chief ministers headed by Andhra Pradesh Chief Minister N Chandrababu Naidu. The goal is to promote digital payment systems, making it pervasive in rural areas as well.

The telecom industry has a huge role to play in the context. The industry leaders are getting together at the Voice&Data Telecom Leadership Forum in New Delhi on December 21 to discuss how telecoms are adapting to become digital services provider, in order to serve the billion aspirations of Digital India. Do make sure you put it on your schedule. Full agenda is available at www.tlfindia.in.