The government is planning Digi Dhan Mela in 100 cities to encourage digital payment adoption by citizens
The Government of India seeks to promote digital payment methods to encourage consumers and merchants to increasingly shift to these payment modes. To take this initative forward, Lucky Grahak Yojana for Consumers and Digi-Dhan Vyapar Yojana for Merchants were launched on 25th December at Vigyan Bhavan. The schemes are aimed at encouraging people to move towards significantly higher usage of digital transactions through the offer of incentives. Winners will be selected on a daily and weekly basis under the Lucky Grahak Yojana and weekly basis under the Digi-Dhan Vyapar Yojana, respectively, leading up to 14th April, 2017, when the schemes will culminate with a mega draw.
The draws for these events will be taken out in 100 different cities around the country, in a ceremony accompanied by a digital payments adoption fair called Digi Dhan Mela. As part of the Mela, to encourage adoption of digital payments by local residents, booths and help centres will be set up by banks, mobile operators, mobile wallet companies where citizens can get apps downloaded and learn how to do digital transactions.
At the event, huge public participation was seen thronging different stalls put up by various banks, telecom companies, Aadhaar and different departments of the State Governments and Central Government to gather first-hand information about various digital schemes of the Government of India.
The Lucky Grahak Yojana for Consumers has a daily reward of Rs.1,000 to be given to 15,000 lucky consumers for a period of 100 days; weekly prizes worth Rs.1 lakh, Rs.10,000 and Rs.5,000 for consumers who use alternate modes of digital payments, e.g. UPI, USSD, AEPS and RuPay Cards, but will for the time being exclude transactions through private credit cards and digital wallets. The Digi Dhan Vyapari Yojana for Merchants has prizes for digital transactions conducted at merchant establishments. The weekly prizes are worth Rs.50,000, Rs.5,000 and Rs.2,500.
There will be a mega draw on 14th April, i.e. Ambedkar Jayanti where three mega prizes for consumers worth Rs.1 crore, Rs.50 lakh, Rs.25 lakh for digital transactions between November 8, 2016 and April 13, 2017 will be announced on 14th April, 2017. There are three mega prizes for merchants worth Rs.50 lakh, Rs.25 lakh, Rs.12 lakh for digital transactions between November 8, 2016 and April 13, 2017 to be announced on April 14, 2017. To ensure that the focus of the scheme is on small transactions, incentives will be restricted to transactions within the range of Rs.50 and Rs.3,000. All transactions between consumers and merchants, consumers and government agencies and AEPS transactions will be considered for the incentive scheme. The estimated expenditure on the first phase of the scheme is likely to be Rs.340 crore.
Kamalja Raut, DGM, State Bank of India
What are the initiatives of SBI towards digital banking?
We have retail internet banking and corporate internet banking which is available through laptop or desktop. It is the first initiative that was launched and is very popular amongst corporates as well as retailers and individuals. We have launched our mobile apps and we have State Bank Freedom which is for low end mobiles. Besides that we have State Bank Anywhere which has retail as well as corporate customers. Besides that we have various other initiatives like PoS machines for merchants, cash at PoS. We also have our own Buddy, which is our merchant wallet. It seems it is very popular these days and was launched last August. We already have 70 lakh registrations and we are expecting that within few days it will cross 10 crores.
How are you trying to create awareness about these products?
We have various means of doing it and has been participating in these events. Besides, SBI employees have been going around various ministries as awareness camps have been organised and we are also doing publicity over media. As SBI have the largest number of employees so we are trying to convert each and every employee into a digital ambassador. So that is really going to take us forward. For the government also once each and every employee of us is ready whether it is public or small traders we can take them at par and take this initiative forward.
How SBI is helping prime minister's vision of Digital India?
If you see any developed nation the requirement of cash is very less and in our country it is very unfortunate that the cash requirement is too high and it is creating a lot of problems. The prime minister has led the foundation earlier itself by opening Jan Dhan Yojna and various other schemes. So with that the awareness has increased. In Delhi 84 per cent of SBI transactions are alternate channels and digital channel, hardly 14 - 15 per cent are through banks. For the banks migrating to digital channel is more convenient, less expensive and more convenient for customers also. So from that point of view we have really been promoting it and is well accepted by everybody.
Navnit Saurabh, AVP – Merchant Business, UDIO
Would you tell us about the UDIO product?
We are a digital wallet company connected called UDIO with a visa card. One distinction UDIO has over other wallets is that we do not have to acquire customers since we are using Visa network and both online and offline customers are accepting Visa so just by creating a wallet you own a card which is accepted everywhere, thereby helping customers to reach all the target merchants.
The other basic problem is that India does not have enough credit or debit cards because of the banking guidelines. The telecom penetration is really good in India as there are close-to one billion customers who are using mobile phones and we give all the mobile phone customers an opportunity to create a wallet. It can be created either by going online, but at the same time we are also catering to the feature phone customers which is a larger chunk in India. The feature phone customers can have UDIO card and call IVR services to activate the card. So in a way we are creating an environment where the issuance of card is easy for everybody. That is how we are helping Prime Minister's vision of Digital India.
How many cards are active recently?
Currently, close-to 28 lakh cards are active in the market. There are no subscription charges right now and one can buy this card at Rs.49 and the card is valid for five years.
Shrikant Sinha, CEO, NASSCOM Foundation
How is NASSCOM contributing to Digi Dhan Mela?
In Digi Dhan Mela, the most important work is to provide volunteering support to the people who walk in. It is important for them to understand where the banks are located and also help the exhibitor with the technology. Our volunteers are also helping people to understand how to get on to the net and download the app. The reason behind this support is that, if you look at the IT industry today, if more and more underserved people become part of the Digital India, then we would be very quickly moving towards a developed nation. This Jan Dhan Mela is a step to realize the vision of Digital India.
Would you be participating in the Digi Dhan Mela organized by the government in other cities?
We will be happy to support Digi Dhan Melas in other cities. Apart from this, we have also launched a campaign "Each One, Teach One". The IT industry deploys around four million people and by Each One, Teach One we can get more and more number of people in the Digital India fold.
How will Digi Dhan Mela help Prime Minister's Digital India mission?
On the one side, we are already running digital literacy and helping them through over 150 centres to get people digitally literate, but even if they are digitally literate and do not get on to the financial platforms they will still be left behind. That is where this is going to propel them to Digital India
Saqib Khan, AGM, Idea Money
Would you explain about the Idea Money?
Idea Money is a platform which we are providing to the customer. Idea Money is a very easy-to- use interface for subscribers’ day-to-day needs. All kinds of payments like utilities, DTH, electricity, insurance, etc are handled by Idea Money. This is done by creating a wallet in the mobile number of the customer and it need not be an Idea number. It can be of any operator. After creating the wallet, the customer can load in money in that and start using our services.
We have ensured that this wallet is not only available on smartphones but also on the USSD platform. So a lot of feature phone users are also able to use this platform through USSD. We have also started making merchants in the market. If a customer goes to the shop and asks for payment options and if the Idea Money is available, then he can pay through the Idea money also. We are fully in support of the Government of India’s plan of going digital and moving towards cashless economy. We are very well geared up as we have a huge distribution network throughout India not only in urban but also in rural areas.
How many subscribers do you have?
In Idea Money, we have already crossed around six and a half million and we are soon moving to seven million.
How do you see competition like Airtel Money, Jio Money and others?
The competition is good as it helps in creating awareness among the merchants. We have also started moving in the same space and we have been received very well in the market.
How secure are these platforms?
The platforms are well secured as they are protected by two-tiered security. At the time of registration, it is secured by an OTP and at the time of transaction there is MPIN to complete a payment.
How are you helping Prime Minister’s Digital India Mission?
This is a very good initiative by the Prime Minister and whatever possible is being done by us and other operators. We are helping the customers by educating them not only through our channel but also through prepaid channels.
Vipin Chopra, Vice-President, Jio Money
Would you explain about Jio Money and what is its USP?
Jio Money is a very secure product because we have the security passwords for customers. Without the security password, no one can use Jio Money. Playstore customers can download Jio Money app, fill some columns and make their security passwords. So for any transaction the customer has to use the security password. It is a cashless journey for the customers.
Second, we have an option for pay at shop. The customer can visit any retailer who accepts Jio Money and the only thing the customer needs to do is to click pay at shop and enter the mobile number after the name of the shopkeeper which will reflect and one can pay the desired amount.
We have a code creation offer, i.e. when the customers download Jio money app, he will get a voucher worth Rs.15,000 free of cost.
How can a merchant subscribe Jio money?
We have recently launched a merchant app. If any merchant wants to subscribe Jio money, he can visit the playstore and download the app. After the download, he has to mention the mandatory details on their wallet and a cancelled cheque. The merchant can take a picture of the cancelled cheque and upload into the system and within three minutes he will become a Jio Money merchant. So we configure their account with the bank and the money directly goes to his bank account. We have another facility of code creation. If a customer wants to promote his shop, we have a code creation facility. If he creates a code into his system, then all the Jio Money customers will get a notification.
How does Jio Money help government's Digital India mission?
Due to demonetization, most of the people are going through cash crunch and they have debit/credit cards so they can upload their Jio Money app and load it through cards and can pay the amount to any of the retailer.
Jaseel PC, Chief Manager – IT, Indian Bank
Would you brief us about the Indian Bank’s mobile products?
We have two unique products. One is e-purse. It is a combination of wallet, debit card and gift card. For this you need to have an Indian Bank’s Internet banking account. You can login to the account and create up to three virtual accounts. Each of the accounts will be issued with a debit card. Master Card can be used at shopping establishments, online transactions and ATM cash withdrawals as well. You can gift it to anybody whose name can be printed on the card. You can load it through Internet banking and can also take it back as well.
We also have a mobile banking product called In Pay app where you have a unique feature of scan and pay. A consumer can walk into a merchant establishment and pay to the merchant. He will be provided with a QR code by the bank. He can be a customer of any bank. The person who has In Pay app can scan the QR code and make the payment.
How secure are these products?
We have OTP-based validation for all the transactions. You have a password to login into In Pay, a password for making transaction and there is also an OTP-based authentication. We are also providing another app called IB Smart Remote where you can control your debit card and credit card remotely. You can switch off the debit card and in In Pay Internet banking and mobile banking can be switched off facility. You can switch it back to on status when you want to use it. So while it is switched off nobody can use it.
How does the Indian Bank help in the Government of India's Digital India mission?
We are going aggressively on this scan and pay application. In the remote villages of Tamil Nadu, the street merchants are using our application. We are also canvassing PoS machines for rural, urban and semi-urban merchants.
Ankit Anand, Manager – Marketing, Payworld
Please tell us about the new device launched by Payworld?
It is a small MPoS device which can be connected through Bluetooth to the smartphone. The device also acts as a micro ATM and any debit or credit card can be accepted through this machine. The user can even withdraw any amount, as per the RBI norms.
How is Payworld’s new device useful for merchants?
In the current scenario, due to demonetization there is cash crunch and majority of the people are running out of cash. People are also facing many difficulties in withdrawing cash from ATMs to make payments in merchant outlets so these machines are working as a boon for them as the merchants can get these machines from Payworld and accept card payment.
How many machines have you sold and what is the cost of the machine?
After 8th November, we have sold 5,000 machines and nearly 1,000 orders are in the pipeline as well. These machines cost around Rs.3,500 and there is a monthly rental of Rs.250 as well.
Bharat Bhushan Dhall, Chief Relationship Manager, Syndicate Bank
Please enlighten us about the Digi Dhan campaign?
We are organizing a number of camps for Prime Minister’s Jan Dhan Yojana and also for digital banking awareness. On an average, around 10 campaigns are being organized in Delhi only. For digital banking, we are not only organizing camps but we are also educating corporate customers. Syndicate Bank is aggressive on mobile banking and e-passbook awareness and our customers are also getting benefited from this campaign. We are also organizing Prime Minister’s Jan Dhan Yojana campaigns for opening saving accounts in villages.
Ambarish Kumar Sharma, Manager, Oxigen
Would you talk about different products of Oxigen?
Oxygen is a 12-year old company which is into digital payments and it is easing the market by providing solution to go cashless. We have a revolutionary product called Super PoS which is a micro ATM basically which is very beneficial for the country right now. We also have Oxygen Wallet which facilitates payments without using cards. One distinguishing feature of the Wallet is virtual Visa card. One can create a virtual visa card and use the Wallet balance to create it. The benefit is that it is completely risk free and is like a credit card. If you lose your credit card, then your complete account is in risk but by virtual visa card the benefit is you create the card on your own so if you want to spend Rs.500 you can put it on the card through Oxygen Wallet. Once the amount is exhausted, the account gets deleted. So there is no risk at all.
How are you helping Prime Minister’s Digital India mission?
Super PoS is beneficial for the country as it encourages you to do cashless transaction. We also see long queues outside banks and ATMs. Instead of that people can come to the retailer shop, deposit and withdraw money through this machine. So it is going to reduce the pain of the country.
Tarun Anand, market development manager, M-PESA
Please explain Vodafone M-Pesa?
It is a unique service launched by Vodafone in 2012 with the core objective of money transfer. We wanted to help the workers and migrants to transfer money from banks to relatives. If I talk about remittance, we had a huge success as we have achieved the mark of Rs 1,000 crores of money transfer a month before demonetization. Post demonetization the volume has dropped by 50% as it is process of conversion of cash into electronic money. We came up with the features of utility bill payments, DTH recharges, post paid bill payments etc. We have also tied up with few etailers and food joints where people can pay through M-PESA. The latest entry we have done is into merchant space.
We are looking at this in a very strong manner and want to explore more. We have a huge distribution potential. In Delhi we have more than 100 distributors, 2,000+ people on ground who can explore all these opportunities and we would like to target approximately 5 lakhs of merchants in coming three months in Delhi.
How is M-PESA different from other?
In M-PESA, the customer who has cash can go to the M-PESA outlets and can convert the cash into electronic money. This feature is not available in other wallets. Secondly, if anyone is KYC customer then he can transfer money to any unregistered operator and the person who has received the voucher can go to M-PESA outlet to withdraw cash. If you talk about M-PESA Pay, it is a much secured wallet as It is a pin based wallet and nobody can misuse it.
Pravin Prashant & Aparna Mullick
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