Slashdot Mirror
India's Audacious Plan to Bring Digital Banking to 1.2 Billion People (bloomberg.com)
Saritha Rai, reporting for Bloomberg: India is trying to yank its cash-based economy into the 21st century. But how do you get 1.2 billion people, many of whom have never seen a bank or opened an account, to send digital payments to each other? The government's answer is an effort it has named the Unified Payment Interface. Debuting Monday, it's a system designed to make transferring and receiving money as easy as exchanging e-mail or text messages. The goal is to bring banking and financial services to hundreds of millions of citizens, many of them poor and disadvantaged, in one fell swoop. The network was created by India's retail banks and backed by India's central bank -- and they're confident it will work because it's built on top of an even more audacious project: India's biometrics-enabled national ID system, called Aadhaar after the Hindi word for foundation.The idea is to make mobile payments and utilization of other services between users with accounts in different banks frictionless. The Aadhaar number, or a virtual address, will serve as the single identifier. This will also allow a person to use several services of a bank without being its customer, explains Forbes India. The UPI app is in phase-I and is operational for a closed user group. The app is expected to be launched for public in the coming months.
(grabs popcorn)
What good does access to digital currency and "financial services" do for anyone but the banks?
AKA the most important experiment on the way to the eerie cashless society.
Quite the audacious plan, be interesting to see how it rolls out.
Wondering if we'll see the end of cash / anonymous / private purchases in our lifetime? I don't want that, but boy are the banks & governments ready to log and track everyone together.
>> But how do you get 1.2 billion people, many of whom have never seen a bank or opened an account, to send digital payments to each other?
Where, pray tell, did these people get the "digital money" from then if they've "never seen a bank" or "opened an account."
India should come up with a way for its citizens to not need firewood to cook with first.
Soon Indians won't need to rely on the first world anymore: they'll be able to phone people and steal their bank account details using local-rate instead of international calls.
shin phantomflanflinger
I am surprised that they did not call it Rational Unified Payment Interface.
Nae king! Nae laird! Nae yurrupiean pressedent! We willna be fooled again!
So, the next time the Indian people get uppity, or vote the wrong way, the payment system experiences "technical difficulties" and the wrongdoers are instantly punished. Or they can use the carrot instead of the stick and people who voted the correct way suddenly find their account awash in rupees. Either way the government becomes bigger, stronger, more powerful, and gains a reach into the day-to-day lives of its subjects. I mean, citizens. What could possibly go wrong?
Shutting down free speech with violence isn't fighting fascism. It IS fascism!
It's digital and widely accepted, right?
Clearly the optimal future is cashless, based on a competent Digital system. I emphasize competent because I don't think we are there yet. It's still a vision. But in theory, it's the future. Cash costs an abhorrent amount of cash to keep in circulation. In most countries the taxpayers have to fund this. When I lived in Ontario, removing the penny from circulation alone reported to have saved the taxpayers millions of dollars over the long run. Cash is also difficult to store/transport. Bank vaults, Armored trucks, soilders, and what not. With a competent digital system, just make sure everything is secured properly (the proper encryption, etc) and these problems disappear. This ties to the article as follows. I think the biggest barrier to a cashless system Is that too many people in the world do not use banks or the Internet. You can't just leave all the poor people stranded while the middle and upper class switches over. If India can somehow solve this problem, I'm confident much of the world can.
FTFY
How about mass surveillance. For the vast majority of purchases I don't see what is wrong with carrying a few dollars (or rupees), compared to your economic freedom.
In Belgium transferring money can be done the same day. System is completely automated. Oh, wait, that is working days. PCs do not work during the weekend, And if you transfer money to a company, it takes 3 days.
The reason is that the US needs to see who is paying what to whom. Well, not officially, but that is the reason. Because terrorism.
Don't fight for your country, if your country does not fight for you.
What an odd word for a news story title.
They should do Public Sanitation first.
The majority of people there are still crapping in the bushes.
The real reason is the wet-dream of the power-hungry world wide: to track the 'little-people' financial transactions in real time. It will always be justified by the efficient and equitable application of taxation, but the real motivation is tracking the activities of the Enemies of The State (AKA, the Power Elite). But make no mistake: the One Percent will be exempt from scrutiny as they always have been.
I guess that technology is too hard to master.
India has decided to outsource their tech support due to cost overruns.
We cant even get banks to transfer money from bank to bank without major difficulty and huge fees. and Simple shit like setting a rule of "1% of all deposits go into a separate account" are impossible here in the USA.
Do not look at laser with remaining good eye.
Audacious -- perhaps, but is it also bold and world-class?
I comment occasionally so that I can mod others -1 overrated or -1 offtopic.
Cash: No transaction fees.
Electronic payment: Transaction Fees
Now you know why the banks are interested in pushing electronic payments.
Cash: Anonymous transactions
Electronic Payment: All transactions recorded.
Now you know why government is interested in pushing electronic payments
"Grab them by the pussy" -- President of the United States of America
The pedant in me needs to point out that the phrase "in one fell swoop" doesn't mean what the author thinks it does. "Fell" in this context means cruel, malevolent, or destructive. I really hope that's not the case here.
Then again, it's being done by banks, so maybe that description really is right.
"I'm too busy to research this and form an educated opinion, but I do have time to tell everyone my uninformed opinion."