BANKS NOT FOR STATE’S OWN WALLET

Bankers say they are overloaded; everyone in state needs to have a bank a/c

Banks refuse to open new accounts, a pre-requisite for the state’s own TS-Wallet.

TS-Wallet, a mobile App being devised by the government to make Telangana a “cashless transaction state” faces hurdles even before it is launched.

The government had asked collectors to ensure that all people in the state get bank accounts before the app is launched. Banks refused to open new accounts, stating that they were overburdened with a large number of accounts and were not in a position to service new customers.

The banks estimate that they need to open over 25 lakh new accounts in state to enable cashless transactions under TS-Wallet. For this, they need to open new branches.

TS-Wallet is aimed at offering online transactions without collecting service charges and taxes from people unlike private online payment services. Interestingly, the AP government has announced launching of AP-Purse, along the lines of TS-Wallet.

Official sources said TS-Wallet would not add to the confusion though there are several private players in the market, who are already offering cashless payment services.

A banking expert said that TS-Wallet would be different. “First of all, this is a government initiative. People have several apprehensions that private players will impose various charges and hidden taxes. But in case of TS-Wallet, the government is promising waiver of all charges and ensure zero financial burden on the people,” said Mr K. Narasimha Murthy, banking expert.

The government wanted to enter into MOUS with all banks to waive the charges to encourage cashless transactions, especially in semi-urban and rural areas, where the cashless transactions are almost nil.

It was found that people, especially from middle and lower income groups were averse to cashless transactions, fearing payment of extra charges.

The government is willing to pay some money to banks and mobilephone operators on its own, if they refuse to offer cashless services free of cost.

“These recommendations are now under the consideration of the Chief Minister,” sources added.

However, banks are pouring cold water on the TS-Wallet initiative, which mandates that everyone above the age of 18 in the state must have bank accounts.

At a video conference held with district collectors by Niti Aayog officials on Thursday, the issue of banks refusing to open new accounts came to light.

Collectors stated that a majority of the banks were already serving multiple villages and towns in districts and could not open new accounts with the existing infrastructure and staff.

India does not have a national payment app. Even the Centre and the RBI have been backing the use of apps provided by private players.