With the adoption of technology and the kind of disruption happening in the digital payments space, ATM cards and POS would become redundant by 2020, said NITI Ayog CEO Amitabh Kant.
Mr. Kant who was talking at a session organised as part of the Youth Pravasi Bharatiya Divas also said the country can use technology to leapfrog various issues in areas such as education, health, among others.
“India is in the midst of huge disruption in the world of both financial technology and in terms of social innovation. In my view within the next two-and-half years India will make all its debit cards, credit cards, ATM machines and POS machines totally irrelevant,” Mr. Kant said.
Speaking at a session on ‘Startups and innovations which have social impact in India,’ he also said that start-ups can work on various issues and social innovation can help to empower the weaker section of the society.
Further he said: “The cards will become redundant in India as every Indian will do transaction just by using his thumb and mobile phones. The transaction would be done in just thirty seconds through Aadhar-enabled technology.”
“Due to demonetisation there is a huge push towards digital payments. India is the only country in the world with a billion mobile connection and a billion biometric,” he added.
Mr. Kant also said that over 85 per cent of the transaction was in cash and only a few were paying taxes in the country.
Stressing on the need for digital transaction and creating a formal economy he said: “It is impossible for India to become a ten trillion economy like this where two trillion dollar is a formal economy and another one trillion dollar is an informal black economy. It is not possible for India to grow.”
Mr. Kant also said that start-ups can become job creator and will help in the GDP growth. He also emphasized on the need for creating more women entrepreneurs.
On the GDP growth he said, India is growing at about 7.6 per cent per annum and it is an oasis of growth in the midst of a very barren economic landscape across the world.