RBI affirms cash as corona carrier: CAIT

NEW DELHI: The Confederation of All India Traders (CAIT) on Sunday said the RBI had affirmed the possibility of currency notes as potential carriers of novel coronavirus and demanded government incentives for digital payments.

The development comes after CAIT wrote a letter to Union Finance Minister Nirmala Sitharaman on March 9, 2020 seeking clarification whether or not currency notes are carriers of bacteria and viruses.

However, the letter was forwarded to the Reserve Bank of India, which replied to CAIT and hinted that currency notes could be carriers of bacteria and viruses, including coronavirus, and therefore more and more usage of digital payments should be done to avoid handling of currency, the confederation said in a statement.

The RBI further stated that “in order to limit the coronavirus pandemic, the public can make payments by sitting at homes through various online digital channels like mobile and Internet banking, credit and debit cards etc and avoid using or withdrawing cash to the extent possible.” According to CAIT President BC Bhartia and Secretary General Praveen Khandelwal, the RBI’s reply indicates that the currency notes do carry viruses and bacteria and, therefore, the maximum use of digital payments to avoid handling of currency notes was advised by them.

The CAIT urged Sitharaman to introduce an ‘incentive’ scheme for acceptance and adoption of e-payments. “Bank charges levied for digital transactions should be waived,” the statement said.