Strength­ens Dig­i­tal Econ­omy

Voice&Data - - COVER STORY -

Suc­cess­ful en­trepreneur

Vi­jay Shekhar Sharma, Founder & CEO, Paytm,

has thor­oughly ex­am­ined the bud­get. He says, “It is a dig­i­tal econ­omy bud­get. Govern­ment has pushed the dig­i­tal theme in ev­ery area of the bud­get. Ev­ery per­son/ en­tity from small shops to con­sumers are get­ting pushed to­wards the dig­i­tal econ­omy. Tax ben­e­fits, in­cen­tives to use dig­i­tal pay­ments and ex­tend­ing loans based on a dig­i­tal foot­print will cre­ate a larger mer­chant ecosys­tem for dig­i­tal pay­ments. In­cen­tives for la­bor­in­ten­sive sec­tors in­clud­ing hous­ing, farm­ing and dairy will help SMEs cre­ate new jobs. Fo­cus and at­ten­tion to bank NPAs, as well as in­creas­ing bank cap­i­tal­iza­tion is great step to­wards strength­en­ing the fi­nan­cial sys­tem of the coun­try. Fi­nally, the in­come tax rate changes will en­cour­age more peo­ple to re­port their in­comes and cre­ate a larger tax net for the coun­try. Over­all, it is a great bud­get that will en­cour­age peo­ple to move to the for­mal econ­omy and de­rive ben­e­fits.”

To strengthen and reg­u­late the dig­i­tal econ­omy, the Fi­nance Min­is­ter has pro­posed to cre­ate a Pay­ments Reg­u­la­tory Board in the Re­serve Bank of In­dia (RBI) by re­plac­ing the ex­ist­ing Board for Reg­u­la­tion and Su­per­vi­sion of Pay­ment and Set­tle­ment Sys­tems.

Wel­com­ing this move,

Ramki Gad­di­pati, CTO & Co-Founder of Zeta,

another dig­i­tal pay­ments com­pany, says “It is en­cour­ag­ing to see that govern­ment is mov­ing for­ward on pay­ment sys­tem reg­u­la­tion. We hope the set­ting up of a sep­a­rate pay­ment reg­u­la­tory board will help in im­prov­ing in­ter­op­er­abil­ity and in­no­va­tion. The Fi­nance Min­is­ter also an­nounced dig­i­tal in­fra re­lated mea­sures and we hope all th­ese steps will help more and more peo­ple join­ing the dig­i­tal ecosys­tem. As ex­pected Fi­nance Min­is­ter made a for­mal an­nounce­ment on the launch of Aad­haarPay in to­day’s bud­get and I am con­fi­dent that this will push dig­i­tal pay­ments to grass­roots lev­els of the coun­try.”

Jait­ley had an­nounced that Aad­har Pay, a mer­chant ver­sion of Aad­har En­abled Pay­ment Sys­tem, will be launched shortly. This will be specif­i­cally ben­e­fi­cial for those who do not have debit cards, mo­bile wal­lets and mo­bile phones. A Mis­sion will be set-up with a tar­get of 2,500 crore dig­i­tal trans­ac­tions for 201718 through UPI, USSD, Aad­har Pay, IMPS and debit cards. Banks have tar­geted to in­tro­duce ad­di­tional 10 lakh new PoS ter­mi­nals by March 2017. They will be en­cour­aged to in­tro­duce 20 lakh Aad­har based PoS by Septem­ber 2017.

Vivek Khan­del­wal, Vice Pres­i­dent, Delta ID,

a global sup­plier of iris recog­ni­tion tech­nol­ogy, wel­comes the duty ex­emp­tions on iris en­abled PoS de­vices, and says that they are truly ex­cited about the strong em­pha­sis the govern­ment has placed on Aad­haar en­abled pay­ment ini­tia­tives. “With all the foun­da­tions with re­spect to stan­dards, cer­ti­fi­ca­tions, and avail­abil­ity of de­vices, al­ready in place, this im­pe­tus will fur­ther ac­cel­er­ate the adop­tion and in­te­gra­tion of Aad­haar in

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