India has been making some inroads when it comes to the future of finance. Several of the recent changes in the country have gotten a lot of attention. That doesn’t mean there is going to happen much of a “shift” in this country, though. After all, India will put itself on the map in one way or another. Below is a brief summary of some changes coming or already introduced in the country.
India is a rather innovative country when it comes to finance. As a result, all bank accounts need to have a resident number associated to them by the end of December 2017. That won’t be much of a problem, as they can provide at thousands of locations across the country. Consumers need to provide a fingerprint or iris scan to obtain this data. It also means all bank accounts will be linked to biometric data. That in itself is a pretty interesting concept, to say the least.
India has a new and Exciting Initiative
This biometric authentication is compulsory in India moving forward. While not everyone sees the benefits of this approach, there is no way of avoiding it. Retailers will also be able to replace existing POS systems with fingerprint-capable devices. It is evident biometric authentication will play a big role in the future of India’s payment sector. These payments are linked to a mobile app which links to the customers’ bank accounts. A central clearinghouse will process the transaction data accordingly.
Unbanked users in India, unfortunately, will still face some trouble. While the government is working on promoting financial inclusion, they can’t fix everything overnight. A cooperative bank and mandated priority sector lending targets have been introduced already. It remains to be seen how this venture will play out in the future. A lot of people don’t want to become part of the banked ‘herd’, so to speak.
Last but not least, there is the ban on high-denomination cash bills. This ban went into effect last year and yielded mixed results. Some people call it an outright failure, for obvious reasons. Thankfully, it appears most of the issues have finally been sorted It remains to be seen if the new initiatives mentioned above will make a more positive impact.
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