Indian PM Narendra Modi’s dream of making India a cashless economy has hit with a huge blow as hackers breached into bank details and successfully compromised with 3.2 million debit cards information.
In May, Modi urged Indians to use plastic money instead of hard cash to stop corruption and decrease untaxed aka black money circulating in the country.
The dream of the PM may fail to see the dawn of the day after the fraudulent transactions done mainly in US and China. Total amount withdrawn was $ 194,000 from 641 customers’ cards from 19 banks, but the breach is enough to reduce faith in doing online monetary transaction.
The internet giant, Google, Inc., believes that the internet transaction will significantly rise of $500 by 2020.
“Given that most Indians are in the villages and not tech savvy, there will be lot of apprehension regarding usage of digital money and cards after this breach,” said VVSSB Shankar, founder of i-lend. “This is a major setback for India’s fight against the cash economy. Banks will have to increase security measures and improve efforts to educate people to tide over this.”
India is still far behind in gearing up card transaction because still 98% people prefer cash over plastic money. Indians are currently holding the total of 697 million debit cards and 26 million credit cards and still the percentage of cards usage is far lower than one could imagine.
“Rather than the actual impact of the breach it is the noise, confusion and fear of the unknown which is fueling the panic,” Naveen Surya, chairman, Payment Council of India. “Large part of the population is familiar with risks associated with hard cash while this is probably their first encounter with risks in digital money. We should put best security practices in place and also make more efforts to educate people.”
SBI has taken a huge step by isolating the affected card and issuing new cards on theit places.
Article By: Mukesh
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22 Oct, 2016 – 11:00am