Suggestions to improve digital payments | Fusion - WeRIndia

The Indian government says that it aimed to improve the digital mode of payments in the country, however, the actions required for this direction are not adequate.

Earlier this week, an official from Confederation of All India Traders revealed that the bank cheque facility may be withdrawn in the near future to boost digital payments especially, card payments.

But, it is not known how much forcible actions would succeed. Many educated people these days are interested in using their cards for all their needs. Yet, the problem is the additional charges on the use of cards.

Many merchants at their PoS charge extra one or two per cent on the total amount of the bill which causes many customers to step backward from their cards.

Merchants want to collect their rental charges or transaction charges that are charged by the banks from their customers who use their cards at their machines.

As a result, use of card payments are discouraged by people. If banks encourage their merchants by eliminating charges if they use certain number of transaction per month, then merchants can encourage their customers to use cards to reach their target transactions. Then, customers will also use them happily.

Many government departments or institutions like electricity department are charging additional amount as service charge on card payments. In one way, government wants to improve digital transactions and in another way they are discouraging with additional charges.

In a country like India, where the majority of people are price sensitive, government should encourage the citizens positively.

But, in reality the card payments and even net banking attracts charges so people are not interested to use them. They prefer to use cash with its easy handling and lack of charges.

Rather than imposing additional charges, government should find out the ways to improve digital payments.

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