14 DEC, 2012,
The finance ministry has not convincingly established the business case for a BC. Do we have an idea how a BC would do it better? The answer would be in commissions and incentives. Agreed.
But where is the business case to the banking institutions if these costs are loaded? Does it work at scale?
Too much is loaded on to a single intervention, involving commercial institutions, without a strong business case.
The approach of the government is worrisome. It may be a part of the measures in the run up to the 2014 election is the simplicity with which the solutions are offered. That the entire country can take a single solution; that the solution can be offered through the banking system; that the only impending problem was establishing identity; and that Aadhaar will sort out issues much more than identity and fix leakages and petty corruption.
The commercial sector would have looked at this through the lens of segmentation, test marketing and local strategies. The government believes in standardisation and scale.
Even if Aadhaar number is subjected to multiple pilots in several locations, it is difficult to imagine how these pilots have informed this aggressive rollout of cash. This space is getting to be interesting and we need to watch for more action.
- Direct Cash Transfer – Socialism, Cash Down #UID #Aadhaar (kractivist.wordpress.com)
- #India’s Cash course- will it succeed ? (kractivist.wordpress.com)
- Why civil Liberties activists walked out from Nandan Nilekani’s lecture #mustread #UID (kractivist.wordpress.com)
- Of Aadhaar/UID , cash transfers and red tape (kractivist.wordpress.com)
December 15, 2012 at 8:15 am
Reblogged this on Murali.