The union government has set up a 13-member committee to formulate a roadmap to implement measures that promote digital payment systems and move towards a healthy financial ecosystem.
One of the objective of this panel is to suggest measures to normalise the situation in the wake of demonetization of Rs 500 and Rs 1,000 denomination notes.
Chandrababu Naidu, Chief Minister of Andhra Pradesh, will be the convener of the committee which includes five other Chief Ministers. The composition of the Committee is as follows:
|(i)||Chandrababu Naidu, Chief Minister of Andhra Pradesh;||Convener|
|(ii)||Naveen Patnaik, Chief Minister of Odisha||Member|
|(iii)||Shivraj Singh Chouhan, Chief Minister of Madhya Pradesh||Member|
|(iv)||Pawan Kumar Chamling, Chief Minister of Sikkim||Member|
|(v)||V. Narayanasamy, Chief Minister of Puducherry||Member|
|(vi)||Devendra Fadnavis, Chief Minister of Maharashtra||Member|
|(vii)||Arvind Panagariya, Vice- Chairman, NITI Aayog||Member|
|(viii)||Amitabh Kant, CEO, NITI Aayog||Member Secretary|
|(ix)||Nandan Nilekani, former Chairman, UIDAI||Special invitee|
|(x)||Janmejaya Sinha, Chairman, Boston Consulting Group||Special invitee|
|(xi)||Rajesh Jain, Managing Director, netCORE||Special invitee|
|(xii)||Sharad Sharma, Co-founder, iSPIRIT||Special invitee|
|(xiii)||Dr. Jayant Varma, Professor (Finance), IIM (Ahmedabad)||Special invitee|
Subject Areas of Committee:
(i) The Committee shall identify the global best practices for implementing an economy primarily based on digital payment and examine the possibility of adoption of these global standards in the Indian context;
(ii) The Committee shall identify and outline measures for rapid expansion and adoption of the system of digital payments like cards (Debit, Credit and pre-paid), Digital-wallets/ E-wallets, internet banking, Unified Payments Interface (UPI), banking apps etc. and shall broadly indicate the road map to be implemented in one year;
(iii) It shall evolve an action plan to reach out to the public at large with the objective to create awareness and help them understand the benefits of such a switchover to digital economy;
(iv) It shall prepare a roadmap for the administrative machineries in the States to facilitate adoption of digital modes of financial transactions;
(v) Identify and address bottlenecks and indicate solutions pertaining to adoption of the steps required to move towards a digital payments economy;
(vi) Associate the key stakeholders for implementation of the suggested steps towards a digital payments economy;
(vii) Delineate and adopt measures evolved by the Committee of Officers constituted for the purpose;
(viii) Examine and address any other associated issues which are not specifically mentioned herein. The Committee may devise its own procedures for conducting business/ meetings/ constitution of sub-groups, etc.
Economic growth with financial inclusion and equity is a key priority of the Government. By enabling broader access and participation in the financial system, the Government aims to reduce income inequality, boost job creation, accelerate consumption, increase investments in human capital and help the poor families to manage risk and absorb financial shocks.
Digitization of payments would significantly enhance financial inclusion by overcoming physical barriers and would thus enhance access to financial services rapidly. In addition, it would also enable formalization of all financial transactions thus increasing transparency and plugging leakages from the system.
NITI Aayog was entrusted with the task of undertaking a campaign to implement digital payments systems and it has been working on an awareness campaign to popularize the different modes of digital payment which are currently available viz. Cards, USSD, digital wallets, Aadhar Enabled Payment System (AEPS) and Unified Payment Interface (UPI).
There is also an urgent need to spread awareness about the above initiatives in the form of a mission-mode, including sensitization of field level functionaries about the same. As NITI Aayog is mandated to act for promotion of co-operative federalism and recognizing the crucial role of State Governments in this endeavor for nation building NITI Aayog has been carrying forward its mandate in close association with the States and the respective state administrations.
Keeping the above aspect in mind and to give a boost to the adoption of digital payment systems by people at the grass root level and small businesses, the above Committee has been set up.