The dominance of cash transactions in India comes at a cost, with the RBI and commercial banks spending Rs 21,000 crore annually in currency operations. It is opaque, facilitates tax evasion and is generally system inefficient. The biggest challenge before payments banks (which essentially promote financial inclusion by making it easier to set up an account) is to get this cash routed through formal banking channels, mostly electronic, and thus start a silent revolution to dethrone the king of inefficient times -- cash.
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