Literacy to play a role in cashless transactions

Visakhapatnam: With chief minister N Chandrababu Naidu announcing his plans to transform AP into a state with cashless transactions, people from various walks of life have expressed that the state’s literacy level will play an important role in the success of the project.
As per the 2011 census report, Andhra Pradesh has a literacy rate of 67.4 per cent.The state’s male literacy is 74.8 per cent, while female literacy rate is 60 per cent. Except Nellore, Krishna, East Godavari, West Godavari and Chittoor, all the other eight districts including the north coastal districts of Srikakulam, Vizianagaram and Visakhapatnam registered a literacy rate below the state’s average literacy rate.
“The average literacy rate surely play a role in the success of cashless transaction plans of the state government. Many villages don’t have proper banking services and more than 20 per cent of the eligible people don’t have bank accounts,” said CPI state leader JV Satyanarayana Murthy.
“Moreover, it is not feasible to force illiterate people to use debit and credit cards in the name of cashless transactions as the banking system in India is still unsecured and many fraudulent practices like online money thefts continue to occur. Many literate people also don’t know how to operate cards,” Murthy added.
Retired sociology professor K Vijaya Kumar said the state government’s goal to go cashless is laudable, but cautioned that it should be introduced after necessary ground work. “Literate people may know the basics of cashless transactions such as net-banking and use of debit and credit cards. But if a person does not know the basics, they can be easily cheated by fraudsters,” he said.
Speaking to TOI, Deepak S Pandit, State Bank of India deputy general manager for Visakhapatnam zone, said cashless transaction can help all stakeholders avail a transparent service. “Every person including illiterate people hailing from villages must have knowledge about the banking system,” he opined.
“However, I admit that awareness and improvement in the state’s literacy rate should be achieved before realising the dream of Digital India. The present crisis has forced the people to go for digitalised transaction methods including net-banking and online payment,” Pandit added.
Pandit also explained that since demonetisation, SBI has registered a 10 per cent growth in digital transactions from 29.9 per cent in Visakhapatnam district. Similarly, Srikakulam district has registered 25.68 per cent usage of digital transaction methodsas compared to 19 per cent previously. In Vizianagaram, 26.61 per cent people have gone digital, up from the previous 21 per cent.
Meanwhile, Andhra Bank deputy general manager for Visakhapatnam district B Vijaya Lakshmi said, “Over a period of time, the state will surely go for cashless transactions. It has more pros than cons for both the public as well as the government.”