Bhubaneswar: Essential knowledge about financial services, including cashless transaction, is a sine qua non for ensuring financial inclusion, said experts at a seminar here Saturday.
The seminar on ‘Financial Literacy and Financial Inclusion’ with special emphasis on digital literacy organised by Abhyutthana Financial Learning Centre was attended by several economists and experts including former RBI deputy governor Harun Rashid Khan.
Experts unanimously agreed that a sudden shift to cashless system without imparting essential knowledge to all stakeholders would result in loss of faith in the system.
“We need better infrastructure with better internet facilities to ensure optimum utilisation of digital banking system without technical snags. Secondly, people have to be well informed about digital banking system and other services to prevent possible misuse of the facility. Otherwise, the customers would lose their trust in digital system,” said the former deputy governor of Reserve Bank of India (RBI).
Although experts discussed the need for bringing down cash to GDP ratio, they also underlined the need for better grievance redressal system.
“There should be clarity on whom to be approached if they face any issues with digital banking. Had the government provided incentives for digital transactions or cashless transaction much earlier, it would have helped in reducing dependence on cash,” added Khan.
Since India, like other countries, experiences cyber attacks on financial institutions, experts opined that a better cyber security system and awareness are needed for successful digitisation of banking system.
“As digital banking opens new vistas, cyber security would be a challenge for all stakeholders. So bankers and users need to be sensitised about digital transactions and the associated risks,” said Dasarathi Mishra, a financial expert.
“Opening a bank account will not alone ensure financial inclusion. The customers must be made aware of the banking services to ensure financial inclusion. The banking staff must also be made well aware of the emerging banking products,” said principal chief general manager of RBI. PNN