Govt weighs options to facilitate cash flow through CSCs

Government is exploring options to facilitate cash transaction through about 2 lakh common service centers across the country following the demonetisation move.
"This idea is very exciting (cash exchange and disbursement through CSC). Many of them are also working as banking correspondents (BCs). Government is exploring option of doing it through CSCs," Law and IT Minister Ravi Shankar Prasad told PTI.
According to the minister, there are around 2 lakh CSCs in the country which provide government services to people in villages like birth certificate, Aadhaar registration, bill payments and the like.
Out of this, 20,000 CSCs act as banking correspondents while another 63,000 facilitate Aadhaar-based cash transactions.

After huge rush for exchange of old Rs 500 and Rs 1,000 notes and cash crunch, the government raised cash holding limit of banking correspondents to Rs 50,000 and banks will replenish the cash with them multiple times in a day depending on the requirement.
Banking correspondents have wide presence in rural areas. Totally, there are 1.2 lakh BCs in the country.

At a Digital India seminar on technology to promote faceless, cashless and paperless transactions, the minister said "black money cash is 12 per cent of GDP" in India and 80 per cent of this is in the form of Rs 500 and Rs 1,000 currency notes.

"Besides, Maoist, extremists, terrorists have cash. Parallel economy and its security are a problem for the country. In the North-East, I am told, one extremist organisation has thrown Rs 50-60 lakh in garbage," Prasad said.
"Maoists at some places are worried about what they should do with Rs 3,000-4,000 crore. Through one stroke, we changed the entire ecosystem of the country."
He acknowledged that any change has some repercussions, but it finally cures the problem.
The minister sought practical suggestions from people on framing rules to promote faceless, cashless and paperless transactions.
"Our fight is for honesty. It is a firm government of firm commitment because we know what we are doing is right for the country and for poor people," Prasad said.