Cashless Consumer

#CashlessConsumer This paper studies the agriculture income support scheme Rythu Bandhu implemented in #Telangana in detail. It has a interesting note on payments. #Thread on #G2PPayments #DBT

https://twitter.com/bhargavizaveri/status/1239426876197625856?s=20

BZaveri on Twitter

“In 2018-19, 5 states launched farmer income support schemes, which rely on land records. We undertook a field level study for understanding the state capacity issues involved in linking welfare distribution to land records & the errors that arise from it. https://t.co/QCVlTEhtOT”

Twitter
Mar 16, 2020 at 1:11pmWeb
Show threadCashless ConsumerMar 16, 2020
Though Rythu Bandhu (RBS) needs #Aadhaar, the payment takes place without the #APB infrastructure for #DBT, instead tried cheque based disbursal before moving to #DBT from RBI #eKuber
Show threadCashless ConsumerMar 16, 2020

What is #eKuber ?

e-Kuber is the Core Banking Solution of Reserve Bank of India. e-Kuber Is being widely used by central and state governments for their financial management.

But how does the payment go through ?

Show threadCashless ConsumerMar 16, 2020
State's treasury account held at RBI's CBS #eKuber is connected to #NEFT and the payment goes through. Since its #NEFt, there is no upper limit to the transfer. All that is needed is beneficiary's account number and funds in treasury.
Show threadCashless ConsumerMar 16, 2020
The state in this case, has built a status tracker portal and it gives away details of payment for any grievance redress / transparency.
Show threadCashless ConsumerMar 16, 2020

#eKuber is fairly old and is being in use since 2015 at least. Kerala govt pays salary through it https://www.thehindu.com/news/cities/Thiruvananthapuram/ekuber-portal/article7828848.ece

#Manipur recently adopted #eKuber based #G2P payments https://www.eastmojo.com/manipur/2020/02/11/e-kuber-to-ease-disbursement-of-govt-payments-manipur-cm

e-Kuber portal

Integration of salary payment

Show threadCashless ConsumerMar 16, 2020

We still don't know transaction success rates, #CashlessConsumer has filed an #RTI with RBI and will update here.

While we are it, its important to note than all bank based #DBT stops with bank account as terminal

Show threadCashless ConsumerMar 16, 2020
Beneficiary access still has issues with last mile infrastructure, more recently is susceptible to risks such as moratorium by RBI.
Show threadCashless ConsumerMar 16, 2020
It is still sound alternative and given that #NEFT is free of charge, it probably saves exchequer some money if #G2P payments are routed directly from treasury accounts in #eKuber to beneficiary accounts via #NEFT instead of #APB and incurring cost.
Show threadCashless ConsumerMar 16, 2020

Also, reiterating #CashlessConsumer ;s call for #Aadhaarless #G2P #DBT made at #AadhaarTribunal

https://twitter.com/logic/status/1234007150201954304

Srikanth ஸ்‌ரீகாந்த் on Twitter

“#CashlessConsumer @[email protected] is at #AadhaarTribunal and is talking on intersection of #Aadhaar and #DigitalPayments / #Fintech. #CashlessConsumer makes the following demands to seek a reform in #DBT / payments infrastructure”

Twitter
Show threadCashless ConsumerMar 16, 2020
Ref Govt of TS GO on #DBT using #eKuber https://drive.google.com/file/d/1SCEaEfnFQXXzVIB-_M06KlrLNRziuz74/view
e - Kuber Guidelines.pdf

Show threadCashless ConsumerMar 17, 2020
HR Khan on #eKuber in 2013 - Challenges and Concerns of the Central Bank: Opportunities and Role for the Commercial Banks - Harun R Khan https://www.rbi.org.in/SCRIPTs/BS_ViewBulletin.aspx?Id=14283
Reserve Bank of India - RBI Bulletin

Show threadCashless ConsumerMar 17, 2020
The key difference is #eKuber originating #DBT is a real #DBT at originating end (while still not so direct at recipient end), where as #Aadhaar based #APB is having a central intermediary on top of agency bank and hence has cost of 2 intermediaries & cannot be called true #DBT