Aadhaar cardholders would soon be able to use their cards to credit or debit money. The move comes in the wake of the government’s efforts to encourage cashless transactions in the country.
India is moving towards a cashless society. This transition phase from cash to no cash transactions enabled many E-Wallet companies like Paytm grow exponentially. To continue day to day life payment system is a must.
People have started using different alternatives to tackle cash crunch India is facing after demonetisation. People use plastic money more than ever before. Paytm is a name that has grown immensely popular. Even road side vendors have started using Paytm to accept payments.
Now Government wants Aadhaar-enabled payment to replace debit, credit cards. People can now pay using aadhar card. It means you don’t need to have plastic money or e wallets anymore. All you need is an aadhar card to make payments.
The initiative can help the government deal with situations like recent demonetisation. Also it will help curb black money menace and bring in more financial transaction transparency.
The government is working on developing a common mobile phone app. This app can be used by shopkeepers and merchants for receiving Aadhaar-enabled payments bypassing credit and debit cards, pin and password.
How To Pay Using Aadhaar Card ?
A shopkeeper will have a smartphone with a finger print scanner connected to it via an application. You will have to place your finger on that scanner to pay using aadhaar. Your bank , which is already linked to your aadhaar number will be debited with the amount you pay to the shopkeeper.