Fullerton for greater tech intervention to eliminate cash

The ban on Rs 500 and Rs 1,000 notes can have some temporary impact on business, financial firm Fullerton India said today, but added that it is working on technologies and models to eliminate cash transactions.
"In the rural market cash transactions do take place and due to the ban there could be some temporary problems but it will only help in encouraging people to adopt cashless methods of transaction," the company's Executive VP and Business Head Rakesh Makkar said here.
He said the company has already adopted technology in its NBFC operation and is working on technologies that can make loans and repayments completely cashless.

"We are working on technology and models that will eliminate cash transactions and help in bringing down (cost of) loans for tenures for even less than seven days," Makkar said.
Daily loans and very short tenure loans segment is ruled by money lenders charging interest in excess of 100 per cent but without technology intervention, tapping this segment is not possible, he added.
The NBFC is aiming at 25 per cent growth in business during the current fiscal and is not planning another masala bond issue in 2016-17, Makkar said.
The company raised Rs 500 crore through masala bonds recently.