The Odisha government today said shifting to the cashless and digital payment system could hardly have any success unless there was improvement in internet connectivity in terms of area and speed.
"Banking infrastructure and internet connectivity in the state, more particularly in rural areas, should be improved substantially from the present level for effective implementation of the digital payment system," Odisha Chief Secretary AP Padhi told a meeting of chief ministers participating via video-conferencing on behalf of Chief Minister Naveen Patnaik.
The meeting was chaired by Andhra Pradesh Chief Minister N Chadrababu Naidu, the Convener of the Committee of Chief Ministers on Cashless and Digital Transaction. The Odisha Chief Minister is a member of the committee.
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Advocating reduction in the transaction cost charged by the banks, Padhi demanded development of inter-portability across digital payment systems like Buddy Wallet and Paytm.
More specifically, he suggested that Buddy wallet be compatible and portable to Paytm and not only Paytm-to-Paytm.
Stating that about 60 per cent of the rural banking sub-service areas do not have adequate internet connectivity for supporting 3,900 micro ATMs and mobile POS machines, Padhi said the failure rate of USSD transactions on feature phones in rural areas has been reported to be 60-75 per cent.
Banking presence in remote areas is quite insufficient, he said, adding that telecom and mobile connectivity also needed immediate improvement.
Cashless and digital system of transaction is not impossible in the state if arrangements were made to boost the internet service, Padhi added.
Odisha Finance Secretary TK Pandey said though banks use 3G/4G connections for their card-swapping machines, there are frequent disconnections and the data speed often goes down.
"This even occurs in some pockets of large cities like Bhubaneswar due to connectivity problems," he said.
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