The National Payments Corporation of India is pushing digital payments as a way to reduce social contact and counter any concern of the novel coronavirus spreading via currency notes.
The local spread of the Covid-19 virus has widened with 324 cases detected as of March 22. In response, social distancing measures have been put in place by the central and state governments, including shutting of non-essential shops, malls and theatres.
To further reduce contact during day-to-day transactions, both the Reserve Bank of India and the NPCI are advocating the use of digital payments.
In a statement on March 16, the RBI said that digital payment options can be used to facilitate fund transfers, purchase of goods/services, payment of bills etc.
In the context of the efforts to limit the fallout of the coronavirus pandemic by avoiding social contact and visit to public places, public can use these modes of digital payment from the convenience of their homes through online channels like mobile banking, internet banking, cards, etc. and avoid using cash which may require going to crowded places for sending money or paying bills.Reserve Bank of India
The NPCI has since been promoting digital payment options to avoid social contact on social media.
From Prime Minister Narendra Modi to NPCI Chief Executive Dilip Asbe to business personalities like Mohandas Pai have been posting messages with hashtags like #IndiaPaySafe and #PaySafeIndia
This is the time to ensure Social Distancing.
Digital Payments help you do that. Let's listen to these stalwarts and adopt digital payments. #PaySafeIndia @NPCI_NPCIhttps://t.co/qsNcs0EhKIhttps://t.co/imtK8x98XThttps://t.co/yzKPHiXEvDhttps://t.co/TMuZdPqR2OA safe way to pay. A safer way to stay healthy. Use digital payment options and avoid social contact#IndiaPaySafe #UPIChalega #IndiaStaySafe #PaySafeIndia #IndiaFightsCorona @narendramodi @PMOIndia @NPCI_NPCI @amitabhk87 @rsprasad@nsitharaman @PiyushGoyal@DasShaktikanta pic.twitter.com/E4tU4E3ct8
Research suggests that the virus can stay active on a number of surfaces ranging from metals to cardboard and paper. As such, currency notes, too, can carry a risk of transmitting it.
Flagging of the risk in a research note last week, Soumya Kanti Ghosh, chief economist at State Bank of India, cited studies which pointed to the risk of currency notes carrying disease carrying organisms. Most of the studies have limited sample sizes but many note high degree of contamination of currency notes.
Countries like the U.K., Australia and Canada have switched to polymer notes to reduce the risk of spreading infections through currency, Ghosh said. Therefore, the possibilities of usage of polymer notes in India should also be examined, he said.
For the time being, alternative mode of payments, including digital payments, coupled with incentives and benefits to encourage more and more people for adoption and acceptance of alternate mode of payments in the larger interest of health of the country needs to be encouraged further, Ghosh added.
In February, the Chinese government ordered for cash to be disinfected using ultraviolet or heat treatment. According to a Bloomberg report, China cut off the transfer and allocation of old bank notes across provinces, and between cities most affected by the deadly outbreak. The central bank also ramped up measures to sanitise old money to reduce contagion risks.
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