Make Low Charges to Encourage Digital Payments
FICCI has conducted a seminar about Demonetization to Digital Demonetization to initiate digital payments. In this program, RS Sharma Chairman of TRAI was discussed bout digital payment, which was digital payment will hike when keeping the low transaction charges because India market is cost sensitive. He has also mentioned about major factors for a digital transaction, those are universal cost, convenience, and confidence.
Digital transaction should be depended on work done principle, for example, consider in telecom sector pre-paid digital recharge minimum average value is INR 10, that means minor transition are financially supportable. This principle for a not only short term period it will work for long term process. Essentially for bank sector when will they use this principle then merchant discount rate problems can vanish.
For increase the digital payments or transaction, we need to concentrate on decreasing digital charges and MDR, otherwise again there will be a chance of cash flow in India. Vodafone Company has charged a penalty of Rs 1050 crores by TRAI for not providing interconnectivity to newcomer Reliance Jio.
Sharma has mentioned in the seminar that was India is a free country, every entity has the right of legal recourse and they are well within their rights to go to approach the courts, which is fine. Why should I have any comments, reservation or problems?