Sunday , February 17 2019

Plans for TS-Wallet hits a banking hurdle

Bankers say they are overloaded; one and all in state need to have bank accounts.


Hyderabad: TS-Wallet, a mobile App being devised by the government to create Telangana a “cashless transaction state” faces hurdles even earlier it is launched.

The government had asked gatherers to ensure that all people in the state get bank accounts earlier the app is launched. Banks rejected to open new accounts, stating that they were exploited with a large number of accounts and were not in a position to service new clients.

The banks guess that they need to open over 25 lakh fresh accounts in state to enable cashless transactions under TS-Wallet. For this, they need to open new offices.

TS-Wallet is aimed at proposing online transactions without collecting service charges and taxes from publics unlike private online payment facilities. Interestingly, the AP government has proclaimed launching of AP-Purse, along the lines of TS-Wallet.

Authorized sources said TS-Wallet would not add to the confusion though there are several remote players in the market, who are already offering cashless payment facilities.

A banking professional said that TS-Wallet would be dissimilar. “First of all, this is a government initiative. People have numerous apprehensions that private players will impose various charges and unknown taxes. But in case of TS-Wallet, the government is hopeful waiver of all charges and confirm zero financial burden on the people,” said Mr K. Narasimha Murthy, banking professional.

The government required to enter into MoUs with all banks to waive the charges to cheer cashless transactions, especially in rural areas, and semi-urban where the cashless transactions are almost zero.

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It was found that general public, especially from middle and lower profits groups were averse to cashless transactions, fearing sum of extra charges.

The government is ready to pay some money to banks and mobile phone operatives on its own, if they refuse to offer cashless facilities free of cost.

“These recommendations are now below the consideration of the Chief Minister,” sources added.

However, banks are sheeting down cold water on the TS-Wallet initiative, which mandates that everybody above the age of 18 in the state must have bank financial records.

At a video conference held with region collectors by Niti Aayog officers on Thursday, the issue of banks rejecting to open new accounts came to light.

Collectors specified that a majority of the banks were previously serving multiple villages and towns in areas and could not open new balance sheet with the existing infrastructure and staff.

India does not have a nationwide payment app. Even the Centre and the RBI have been backing the use of apps providing by private players.

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