Government ropes in digital wallet firms Paytm, Oxigen to digitise rural cash

The government plans to tie up with leading digital wallet firms Paytm and Oxigen Wallet to help digitise cash transactions in rural India. 

As per report in leading financial journal Economic Times, the rural development ministry wants to rope in digital wallet firms to make the Rs 40,000 crore turnover of women’s self-help groups (SHGs) cashless and broaden financial inclusion. 

The ministry has tied up with banks to smoothen the transfer of money given through welfare schemes following the demonetisation of high-denomination currency notes. 

Apart from scheduling special time slots for women beneficiaries and getting bank branch managers to travel to villages, the ministry is also warning villagers to stay away from “unscrupulous elements” in these times. 

The November 9 currency demonetisation has taken a toll on liquidity, especially in the rural areas.