Financial inclusion, when executed on a massive and essentially rushed scale, comes with two major issues.
Given that Indians belong to varied socioeconomic background, there should be flexibility in financial schemes designed for different segments of the unbanked population.
An unbanked population of an estimated 140 million, rising cyber security threats, and a cash-dependent informal economy pose challenges to Narendra Modi’s Cashless India.
India clearly lacks the adequate infrastructure required for becoming a cashless system. Among BRICS nations, in this regard, it is a laggard.
The government has ordered banks to open accounts for all tea garden labourers by December 5 so that wages can be transferred into accounts, but owners and labour unions think this is an impossible task.
While there is a need to encourage greater account utilisation among newly banked women, overall growth in active use is clear.
We need to reboot the Aadhaar debate by asking why we want to create a centralised biometric database of Indian residents in the first place