Saturday, 20th January, 2018

Government Launches Reservation in Cashback for BHIM users

06, Jan 2018 By Mukesh Kamath

Government in furtherance of the Digital India mission has decided to deny Cashback and Referral Bonus to the general category. This move by the government ls a well thought out strategy to pacify weaker sections of the society. The argument in favor of the move does look strong. General populace being ahead economically and already tech savvy does not need cashback from BHIM usage seems to be the logic.

BHIM is a government backed wallet named after Dr. B R Ambedkar who is the architect of our constitution. After demonetization in late-2016 the government felt a need to launch a wallet which could help the people to go cashless. The bhim app uses the Unified Payment Interface. To encourage its use the government announced cashback and referral bonus scheme culminating in a draw of lottery for users and merchants. After an year of this scheme the government still continues to spend heavily on cashback and incentives for merchants.

Targeting the Marginalized

A section of bureaucrats in the government felt spending on cashbacks should be by targeting them towards the needy users of the BHIM wallet. Hence government has set a deadline of 15th Aug 2018 to link the caste of every user with his/her wallet. After the deadline expires any user who is general category would not be getting any cashback on using BHIM app.

This move comes at a time when the government should be launching austerities and cut back on spending. The ever precarious fiscal situation of the government necessitates careful spending and reducing wastage. The government has already breached the fiscal deficit target. International oil prices are increasing day by day. It will not be far when the country will become one of the fragile economies.

Aadhaar based targeting of subsidies has yielded the government huge savings and this move is expected to further the figure.