Cashless Delhi Metro: Is Modi govt resorting to force?
Among the slew of measures the Narendra Modi-led government is taking to promote digital transactions, the decision to make 10 Delhi Metro stations operate cashlessly appears to be a forceful one. Chaitanya Gudipaty Among the slew of measures the Narendra Modi-led government is taking to promote digital transactions, the decision to make 10 Delhi Metro stations operate cashless appears to be a forceful one.
Beginning January 1, 2017, commuters travelling from these stations -- Rohini East and Rohini West on Red Line; MG Road Station on Yellow Line; Mayur Vihar Phase-I, Nirman Vihar, Tilak Nagar, Janakpuri West, and Noida Sector-15 on Blue Line; and Nehru Place and Kailash Colony on Violet Line -- will have to use smart cards or digital wallets -- Paytm for now -- to pay fares. While reportedly 70 percent of ticket purchases at these stations are digital, the move is at least unfair on two counts -- a) it takes away a customer's right to choose; and b) a tie-up with Paytm creates a monopoly for the e-wallet operator. Legal tender can, however, be used at select ticket counters at these stations. So, citizens will likely have to prep for long queues for cash-based purchased. The issue with digital modes of payment is the value. For example: A Rs 100 paid in cash translates into Rs 100 on the Delhi Metro Rail Corporation (DMRC) smart card. But, an e-wallet provider will take a commission for the service provided.
Essentially, Rs 100 in Paytm wallet may not fetch you 10 tickets worth Rs 10 each. While it helps that about 70 percent of the transactions at these 10 stations are made through smart cards and tokens, the problem will only compound if the move is extended to other metro stations. Citizens are yet to come to terms with the currency overhaul that began about 50 days ago. The Reserve Bank of India (RBI) is facing hiccups in printing new Rs 500 and Rs 2,000 notes and banks are struggling to recalibrate ATMs to dispense the new notes. Also, migrant labourers and daily wage labourers, who depend on public transport and don't have bank accounts, hit by cash crunch are leaving the city in droves.
The new Rs 2,000 note is as good as unusuable and the RBI is far from having an adequate stock of Rs 500 notes in ATMs.Diktats, in such a situation, are likely to turn public opinion against cashless transactions. Another force at play is the placement of Paytm as the only go-to mode of wallet-based payment. While other e-wallet operators such as Freecharge and Mobikwik may be roped in later, Paytm tie-up raises more questions than answering digital payment quandary. Even here, DMRC commuters have been, at least temporarily, robbed of the choice of e-wallets. This gives Paytm an unfair advantage over its rivals, in turn, creating a monopolistic environment for the Vijay Shekar Sharma-led mobile wallet company. If the government could wipe off currency notes worth Rs 14 lakh crore overnight, it should have taken the interests of other e-wallet companies as well. That demonetisation is a "short-term pain" for the common man, thrusting regulations down his throat without consent can induce a "long-term pain" for the government.
