Govt to substitute physical currency with digital money

Nov 28

The government has said it wants to substitute physical currency with digital money. In reply to supplementaries in the Lok Sabha, Finance Minister Arun Jaitley said, the government’s effort is to see that the quantum of physical currency comes down, but trade and economy must expand.

Jaitley said there are 80 crore debit cards of various kinds in circulation and 40 crore of them are being used at the ATMs actively. He said electronic wallets and digital transfer of funds are the future technology and government is encouraging it .He also sought cooperation of state governments in this regard.

RBI has asked banks to ensure cash supply for pensioners and armed forces in the wake of limited currencies in the market following cancellation of Rs 500 and Rs 1,000 notes as demand for cash from government officials and pensioners is expected after electronic payment of their salary or pension.

The apex bank said banks are therefore, advised to take appropriate steps in order to meet this likely demand for cash. The RBI also asked banks to make cash available at military outposts.

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