Issues with respect to Access, Adoption and Usages of Digital Payment

Many steps are taken by our govt. in order to promote cashless economy but still there are many problems with regarding to access, adoption and usages of digital payment. Here some problems are discussed regarding the issues in access, adoption and usages of digital payments:


  • Collection of traffic challan, toll charges, property registration charges continue to be cash based and Government agencies are not equipped to receive payments digitally.
  • No incentives for the acquirers to deploy POS terminals as the MDR (Merchant Discount Rate) has been capped on debit transactions.
  • RTGS is not operating 24*7.
  • Lack of clarity on submission of documents digitally with the CKYCR (Central KYC Records Registry).
  • Inability of merchants to discern the benefits of electronic payments.
  • KYC requirements like proof of business activity etc to obtain a POS terminal are discouraging small merchants.
  • PAN or Form 60/61 is required to open a bank account.
  • Currently service tax is paid on MDR by the acquiring bank while the issuing bank pays service tax on interchange which is a part of same transactions. Acquirer banks find difficult in raising input credit for service tax because of rigid procedural requirements.
  • Need to accelerate deployment of Aadhaar enabled acceptance network.
  • Currently AEPS (Aadhaar Enabled Payment System) is supporting only fingerprints based authentication.
  • High failure rate of USSD services.
  • No mechanism in place to obtain consent to use Aadhaar for KYC purposes on the basis of One-Time-Password (OTP).
  • No disincentives for making large value payments in cash and cash withdrawals at ATMs.
  • Unlike private enterprise, most Government or quasi Government entities surcharge the customer for making digital payments; e.g. utility & tax payments.
  • Irrespective of the value of transactions, two factor authentications is mandatory to be followed.

Before stepping towards the cashless economy we just need to remove all hurdles and issues.
In other words it can be said that there are many issues in initiative of digital system but here are an emerging technical platform in today’s world for fee collection is FeeGenie-“The Smartest Fee Management System”. A world of convenience and effortlessness awaits you at Feegenie. To reduce the hassle and queue, FeeGenie provides a platform through which you can pay fees within few minutes. ‘Pay fee online’ – this is the standard adopted by leading educational institutions across the PAN India today. Go global and stay competitive using the smart online fee management system from Feegenie and enjoy the essential feature from admission fee collection to fee management of an educational institutions or the institution’s chain.

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