Only after taking cognizance of some of India’s not so well known fiscal facts “mSikkay” – a bank agnostic app was created. This was first small step towards the final goal of the change that is required. This app is available on Android phone (as on date) and eventually would be created for feature phones as well. The journey towards the change has begun, we invite others to join the change and bring in a revolution in transactions. Let us start by understanding what are these India’s fiscal facts that triggered this journey.

1)      RBI  has spent ₹3743 cr. in 2014-15, for currency note printing. (i.e. ₹7500 cr. by 2020. Note: extrapolated based on last 8 yrs) 

2)      Few crore rupees are spent on collection of soiled notes and distribution of the currency

3)      Banks spend ₹18 per ATM transaction + ₹15,000 cr. p.a. on ATM centers

4)      India paid billions of US dollars to foreign cards company in last FY 2014-15 as a transaction fee

5)      More than ₹4.05 lakhs Cr. i.e. 3% of India GDP (a pessimistic estimates) stay outside banking system on any given day (for daily transaction needs of individual).

6)      Fake currency ₹136+ cr. seized in last 3 years (actual would be much more!) 

7)      Cash currency promotes unaccounted / black money circulation

8)      60% citizens are outside banking which directly impacts the country’s economy

9)      Common man faces security issue with cash

10)  Common man loses interest on money and banking history for the cash kept at home

11)  Cash change issue (One has to accept chocolates from places like shops to toll booths). People pay 5% additional money to buy change (coins) for their business.

12)  Citizens outside banking get very expensive loans from sawakar’s (private micro financier) up to 60% loan rate v/s 10% loan rate from banks

13)  There are many more disturbing facts and still this is just the tip of the iceberg!

What is the solution?
Solution -- cash less society i.e. cash transactions to be replaced by instant digital transaction through banks using NPCI’s payment gateway If our society becomes cash less society then all currency related issue will disappear i.e. RBI does not have to print, distribute currency, no arguments over soiled currency, circulation of fake currency into the economy for destabilisation of govt. by anti-social elements and related activities also do not get funds and they get reduced.
Secondly if the small transactions also do not use cash then opportunities to consume black or un-accounted money will no longer exist, thereby making “black money / unaccounted money” valueless

What are bottlenecks / what should be changed to bring in the change?

1.      Transaction fees for small amount transaction i.e. less than 5K should be removed/ absorbed by banks.
Currently few banks charge customer ₹5 per transaction and the split of share of this charges are as below
−        NPCI: ₹ 0.50 for any value transaction (this should change to less than ₹ 0.05 for small value transaction which eventually banks could absorb against the deposits that they will get from customers).

−        Payee bank: ₹1 per transaction as a net funding charge. This should be abolished completely specially for small value transaction as small amount funding should be compensated by the additional deposits the bank would get.

−        Payer banks: ₹ 3.50 per transaction (why so high charges if remitter bank charges are low, do they want to demote people from using this facility ?) this Has to be made to '₹0' zero for small transactions.

 What current transaction fees means for Small Value transaction:

1.       A transaction of ₹ 10 say for vegetable one has to pay ₹15. Note: Transaction fee are charged by some banks for SMS channel and almost all banks over GPRS channel. And if this continues then small value transactions can never be replaced with digital transaction and above listed social issues would remain unchanged.

But… if this changes then small sellers who cannot afford POS /swipe card machine can still be able to take bill amount directly into bank using easy concepts like mSikkay as they do have cell phones.

2.      Mobile banking facility should be available with all Banks A/c types i.e. even for PM Jana Dhana Yojana accounts which currently is not the case. Also digital transactions should not be counted in the 4 per month transaction limits.

3.      Demotivate use of cash currency

a.      Consolidated “Bank specific ATM’s” to a “Bank Agnostic Cash Points”.

b.      ATM transaction should attract a fees say ₹20 per transaction for accounts not meant for poor

c.       Mint/print only low value currency more coins or less paper notes

           I.            Currency has logger life

          II.            Create gross in-convenience to carry cash

          III.            Resolve soiled notes issue

4.      Spread awareness in society to use more digital transactions and not cash transactions —
www.change.org, -- Sign the petition 
www.facebook.com/mSikkayInfo - Like and Share the page and
https://twitter.com/MSikkay

RBI, NPCI and BANKS NEEDS TO BE BRING THE CHANGE OF POINTS 1