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Cash Ban the Best Thing to Happen to Indian Digital Payments

49 点作者 smaddali超过 8 年前

14 条评论

fiatjaf超过 8 年前
I bet some people will think this is good news. Of course it is good news for digital payments providers. For all the other 99,99999999% of the population, including the users of digital payments, it is horrible news.
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pavanky超过 8 年前
I am assuming a lot of people are coming into the thread reading the title and not the article. All cash is not banned in India. Only a couple of denominations have been demonetized and are being replaced by their newer counterparts.<p>This has happened in India before without issues. The current problems exist because of the scale at which it is being done and the short period of notice given.<p>Digital payments are taking off because there is a shortage of currency for the amount of money being demonetized. This is not a move made by the Indian government to push surveillance or other nefarious purposes.
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stuart78超过 8 年前
There was a great introduction to this story on yesterday&#x27;s The World [1]. Sounds like a pretty massive disaster all around.<p>[1] <a href="http:&#x2F;&#x2F;www.pri.org&#x2F;stories&#x2F;2016-11-23&#x2F;indias-crisis-over-bank-notes-hits-women-especially-hard" rel="nofollow">http:&#x2F;&#x2F;www.pri.org&#x2F;stories&#x2F;2016-11-23&#x2F;indias-crisis-over-ban...</a>
t3soro超过 8 年前
&quot;Hemp Ban the Best Thing to Happen to American Paper Industry&quot;
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sirius87超过 8 年前
Just to set the stage: India is highly polarized on this issue. A lot of discussions around govt policies right now end up in heated debates. Loosely speaking, liberals aren&#x27;t very much in favour of the right-wing govt in power and often criticize every major policy announcement, not always based on merit.<p>The majority of working-class people in India are going through a phase of love and adulation for the ruling party and the Prime Minister, so any public opinion on social media against the establishment is met with intense opposition.<p>The news media aren&#x27;t helping decipher the actual state of reality. Much like the US elections, Indian media fuels the polarized population with provocative news stories, and &quot;alt-media&quot; outlets publish opinions and fake news as facts. Many accuse major media houses of unfairly favouring the right-wing govt (much like Fox News in the US) due to connections of the govt with business houses that run them.<p>The demonetization move comes at a time when political parties are gearing up for elections in major states. From extravagant political rallies to feasts, a lot of aspects are funded by <i>cash</i>. Politicians have a history of hoarding cash for elections and &quot;buying&quot; votes from the poor. The demonetization issue was also promoted as a way to deal with a fake-currency printing industry allegedly being run in arch-rival Pakistan. This bodes well with the &quot;Nationalism Wave&quot; promoted in recent years.
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freddyc超过 8 年前
This is certainly a promising sign. A few years back I consulted for a company trying to make a push into the Indian market and the payments piece pretty much killed us. Dealing with HDFC became a daily nightmare and the amount of bureaucracy and red tape involved was soul-destroying. Based on my (very) limited knowledge of Indian payments, my guess is HDFC probably still sits behind these new solutions but if they can somehow streamline the process and shield customers from most of the BS I really hope they flourish.
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ppurka超过 8 年前
This may have been a good idea, but it is terribly implemented. Especially, notes of denomination 500 should not have been banned with immediate effect.<p>In general many poor people, even in cities, do not have bank accounts and face lot of issues when opening such accounts. Sometimes bank require a &quot;reference&quot; from an existing customer to open an account. Sometimes many such poor families (say 20 families - think of it as a big landed area with 20 small houses) live together at a single address, paying rent for a single room, and the banks will refuse to open so many accounts under a single address. Their are several such smaller issues that crop up when trying to open an account that are not well known and that only the people in a particular city or locality face.<p>These people cannot deposit their savings since they don&#x27;t have a bank account to begin with. And they definitely have savings in Rs 500 denomination since 500 is nowadays often used in the markets. Essentially, this ban has hit hard the common people. The very rich are hiring others to do the transactions and exchange of money. The lower middle class and poorer sections are left wanting for cash. Hence, good idea, but bad implementation.
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whowalrus超过 8 年前
I see a lot of commenters bring up privacy viz. tracking transactions and tax avoidance. Now I&#x27;m all for respecting people&#x27;s privacy; but I also don&#x27;t see why the govt. shouldn&#x27;t be able to detect and extract what is legally owed to them.<p>Raghuram Rajan, the ex-RBI governor was in favor of tracking transaction data too (and wasn&#x27;t in favor of demonetization), especially since he felt that the tax rate in India is already reasonable compared to other Industrial nations. [1]<p>So instead of ending the discussion at &quot;It invades people&#x27;s privacy, full stop&quot;, can we talk about ways of ensuring greater chance of collecting taxes? Maybe examples of how other countries have successfully tackled it?<p>[1] <a href="http:&#x2F;&#x2F;www.newindianexpress.com&#x2F;business&#x2F;2016&#x2F;nov&#x2F;10&#x2F;the-clever-find-ways-around-demonetisation-raghuram-rajan-said-two-years-ago-1537108.html" rel="nofollow">http:&#x2F;&#x2F;www.newindianexpress.com&#x2F;business&#x2F;2016&#x2F;nov&#x2F;10&#x2F;the-cle...</a>
jtchang超过 8 年前
This is a huge move and in the end will benefit India in a big way. Basically by banning cash you are making transactions much easier to track. In turn this kills a lot of black market activity and stamps out corruption. By doing this India is making a move toward creating stronger protections toward businesses in the way of contract law and and intellectual property. This makes it much more favorable to innovation (your IP is more protected because the government is stronger)
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notahacker超过 8 年前
tbh I&#x27;m reading the opening anecdote about soda hawkers and roadside egg vendors accepting PayTm and thinking <i>last time I was in India and R500 and R1000 notes were legal tender, I wouldn&#x27;t have expected those guys to have accepted the large denomination notes (no change), never mind digital payments</i>...
wnevets超过 8 年前
misleading title, cash hasn&#x27;t been banned just ₹500 and ₹1000 denominations.
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megous超过 8 年前
&gt; This is not a move made by the Indian government to push surveillance or other nefarious purposes.<p>So why do you need ID when changing the notes? It looks like move to approximately sum up who had how much money in cash.
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matt_wulfeck超过 8 年前
I pray that this never happens in the United States. Money is the most powerful thing in any modern society. When transactions are controlled and surveilled then what can stop total control by a determined government?<p>The black market is a bogeyman. I hope others see this as well.
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kylebenzle超过 8 年前
Is this going to be today&#x27;s &quot;bitcoin&quot; article?