“Understanding the anti-cash chorus” by Ajit Balakrishnan (December 13) is a well-timed article, coming in the wake of the government’s push for a cashless economy. Apart from preferring cash payment Indians hoard money instead of depositing it in banks as a mode of saving.
Interest on bank deposits is low. The middle class finds the four per cent rate of interest in savings accounts discouraging. Jewellery, land, property and shares seem more profitable options. Cash is easily available for use in emergencies.
Access to banks without using net banking sub-optimises its appeal; but many people are reluctant to use it due to lack of internet facility, ignorance about its operation and fear of account hacking.
Customer service in banks is hampered by bureaucratic processes and indifference of the staff. Long queues are unavoidable whether for updating passbook entry or for withdrawing money. The situation in rural areas is more appalling.
If the government ignores those obstacles its obsession with cashless economy could crash.
Y G Chouksey, Pune
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