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He told reporters here that the Information Technology Department is preparing the mobile app which will be known as TS Wallet to facilitate digital transactions.
Appealing to people to go for banking transactions, the Chief Minister said the state will have to sail with the tide, and the government will encourage all procurements and sales through banking transactions.
He announced that Siddipet assembly constituency in Siddipet district will be developed as a model constituency for cashless transactions. "Transactions only up to Rs 500 can be in cash and over a period of time we will do away with this for hundred percent cashless transactions. This model will then be replicated," he said.
Briefing newsmen about the decisions taken at the cabinet meeting, KCR announced that all high value transactions in some departments like registration and excise will be through net banking. Payments in agriculture market yards, fair price shops and milk supply will be through banks.
He said a committee comprising five bureaucrats had been formed to work out modalities for preparing a policy towards cashless e-payment system.
Stating that Telangana has only 5,200 bank branches, he said they were not sufficient.
He called for one bank for every three to four villages and for increasing the number of ATMs across the state.
KCR said the number of swiping machines also had to be increased drastically for cashless transactions. He pointed out that the country has only 14.5 lakh Point of Sale (PoS) machines, he said for a cashless society the country need 10 crore machines. Telangana currently has less than one lakh PoS machines.
Admitting that the state has lost revenue due to demonetisation of high value currency notes, KCR said real estate sector was badly affected creating problems for 10 lakh people who depend on construction sector, especially in Hyderabad.
With a view to mitigate their problems, he announced that the works under double bed-room housing scheme for poor will be speeded up. Greater Hyderabad Municipal Corporation (GHMC), which provides meals for Rs.5 at 45 places in the city, will increase the number to 150.
KCR said Rs 75,000 crore cash was in circulation in the state before demonetization of Rs 500 and Rs 1,000 notes, which comprised 86 percent of the total money. He said Rs 35,000 crore in demonetised notes were deposited in the banks while the Centre pumped in Rs 12,500 crore in new currency notes of Rs 2,000.
He appealed to the central government to immediately make Rs 500 currency notes available to the state as Rs 2,000 note was not serving the purpose due to shortage of low denomination notes.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)