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100 more less cash townships in 3 months: GNFC

Press Trust of India  |  New Delhi 

Hundred more establishments of companies, security personnel, fertiliser companies and others are expected to become less townships in next three months, a top official of Narmada Valley Fertilizers & Chemicals (GNFC) said.

A township of at Bharuch has been declared as India's first 100 per cent cashless town and the has decided to replicate GNFC's model in other big townships to promote payments.

Now the company acts as an advisor to entities interested in setting up less ecosystem around their facilities.

A township is declared less once it starts conducting 80-100 per cent of transactions using means.

"There is potential of setting up of thousands of less cash townships in the country. We, as nodal agency of Niti Aayog, have received numerous interest for this. We expect there will be at least another 100 less cash townships in next 2-3 months," Managing Director Gupta told PTI.

He said that 81 less cash townships have been approved as on April 14 which will account for at least about 9 crore (rpt) 9 crore transactions per year.

"Niti Aayog is working with the Human Resource Development Ministry to establish less-cash townships in collaboration with educational institutes. We are working on converting universities and their colonies into less-cash townships," Gupta said.

"We earlier went around training and motivating people to use digital wallets. Now the Prime Minister has launched BHIM app linked Aadhar where only thumb impression is required and there are no transaction charges. We will now insist people to use this app," Gupta said.

He said that is working with Niti Aayog to convert six townships of BSF and five of Central Reserve Police Force into less cash establishments.

"The new townships will include colonies and facilities of oil, steel and other fertiliser companies. This will be mainly driven by public sector units because we feel the ecosystem can be easily established in controlled environment," Gupta said.

Niti Aayog is promoting less cash townships as part of its efforts to achieve the target of 2,500 crore in the current financial year.

Prime Minister Narendra Modi on Saturday launched 75 cashless/less-cash townships, with an overwhelming 56 of them being in

These townships are likely to generate over 1.5 lakh every day thereby leading to about 5.5 crore digital transactions in a year.

To qualify as a less-cash township, the establishment must have completed deployment of a payment acceptance infrastructure, and all the families residing there would have to be covered under training programmes.

Also, more than 80 per cent of the total number of transactions must have been done through digital modes of payments.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, April 16 2017. 14:28 IST