This is regarding cashless economy in Arunachal Pradesh.
It will be very tough to make a state like Arunachal Pradesh a cashless economy because some people are well educated while others are thumb users still now. We live in a state where some rural / village people don’t even know how to use a mobile phone and how to operate the ATM cards.
The SIM se PAY service was launched by Arunachal Pradesh State Co-operative Apex Bank to provide mobile banking facilities through SMS without internet. But mobile users have no knowledge about transactions through mobile services because most of the account holders are not educated. Out of 13 lacs population, only 1.75 lacs have their bank accounts in apex bank.
Turning an economy where the almost all of the transactions in the villages and in rural areas of Arunachal Pradesh are done by cash, it would be an uphill task to go cashless.
In this way, the main problems of cashless economy in Arunachal Pradesh are:-
1. Poverty: People are unable to buy smart phones or Laptops. Having smart phone or laptop is the 1st step towards online transaction.
2. Illiterate or Insufficient knowledge of English internet. Many people posses’ smart phones or laptop but they don’t know how to operate it as English is required.
3. Many people don’t know about the modern banking and others online services.
4. Internet speeds is very poor in Arunachal Pradesh and most of the villages and rural places have no network and internet facilities.
5. In rural areas, 70% people do not have bank account. If they do have, they don’t know how to use the debit and credit cards.
6. People are insecure about online transaction.
To be a cashless economy state, the first step is to enhance living standards. The second is opening bank account through Jan Dan Yojana. Unless people start opening bank account, cashless economy is not possible. Providing electronic swapping machines to small shopkeepers along with training to operate it. The state Government should provide phone connectivity in every village and increasing the internet facilities.
If a cashless economy is properly implemented, then the associations, unions of Arunachal Pradesh will not be able to run anymore because its main source is cash donation.
If the state government does not take necessary step, Arunachal Pradesh will not be able to transform into a cashless economy till the next 20-25 decades.