30 billion Digital Transactions Target too steep for the current fiscal - Dhinendra Lohmor reflects on the Future of Digital Transactions in India.

1. 30 billion Digital Transactions Target too steep for the current fiscal - Dhinendra
Lohmor reflects on the Future of Digital Transactions in India.
With just over one-third of the mammoth target achieved by the end of the first quarter of
the current financial year, the common man and the Industry Experts have been rethinking
about the target of 30 billion digital transactions set for the year. The government, in order to
ensure that the nation progresses with the changing times, has placed renewed emphasis on
making people understand the power and reach of digital transactions. However, let us not
ignore the fact that the completion of the target will ultimately depend on involvement of
people and their willingness to change the way they conduct their transactional lives.
This is what Dhinendra Lohmor thinks of the 30 billion digital transactions target
announced by the Indian Government. Reflecting on the future of the Digital Transactions
in India, he further adds that mere achievement of targets is not enough. What is more
important is to change the mindset of the common man with respect to preference for certain
modes of financial transactions. Encouraging and enabling smooth transition from paper-
based to cashless transactions is what the Government and the Industry is striving for. Given
are some excerpts from a recent interview with Dhinendra Lohmor.
Question: What makes the 30 billion digital transaction target too steep?
Dhinendra Lohmor: The target itself is not too steep; however, the planning and manner of
execution is key to achieving it. I mean, one cannot give a debit or credit card to a person
who lives in a rural area and shops less than 3 times in a month for basic necessities; and

2. expect him or her to use the card every time he or she shops. We have to undertake the
mammoth task of making our population understand the importance of financial
technology, and the convenience it brings along and how it can upgrade the quality of life.
For example, people who visit the town every month for shopping from their village are
accustomed to approaching their trusted local vendors, and deal in cash. For them, paying
processing fees, understanding the PIN submission and digital aspects of the money
transactions is really difficult at both the seller’s as well as the buyer’s end). Hence to achieve
what we have set out to as a nation, it is important to spread awareness.
Question: What is your take on the Digital transactions’ Future in India?
Dhinendra Lohmor: I feel that the future is bright undoubtedly; but it is essential to focus on
the manner of implementation for faster turnaround. Countries like Canada, Sweden, and
Denmark etc. where digital transactions occupy 75 to 80% share, implemented the system in
a series of steps. Creating the right mind-set is what they did initially and scaled the
initiatives from thereon. Tolls, transits and transportation, are some of the sectors they
started with and then moved on to bigger things. With proper education and ensuring the
right mindset creation, it is not difficult to make things happen.
Question: Why do you think that India will like this whole ‘Digital’ wave?
Dhinendra Lohmor: It is very obvious. India has a large millennial population. The young
are the future key players of every sector. They love technology; they understand it, they
know how to use it and the convenience it offers. They are tech-savvy, and want to use their
smartphones for everything they do on a daily basis. For instance, I have a friend whose
daughter is just 5 years old and she tells her dad to make payments using a card; as it looks
‘trendy’ and ‘cool’ as per her. So you can understand the impact the digital world has on the
minds of the young generation.
Question: How should the digitization proceed?
Dhinendra Lohmor: As far as banking is concerned, Government and Fintech organisations
can start with the procedure of paying bills. The long queues where people stand to just pay
bills are a nightmare that repeats itself every month for various things. Start colony-wise or
region-wise, spread over a few kilometres. Make a focal point say, E-Seva where people can
come with their cards, see how things work and complete the cumbersome process in
seconds. Further, they should be taught that all this can be done from home without
spending so much time, thus improving the quality of life. Another step will be to provide
improved infrastructure; internet being foremost. People should be offered direct/indirect
incentives for doing digital transactions; for example, lower toll charges if a digital
transaction is done, discount on electricity, water, gas bills if paid digitally. Appoint
facilitators & trainers at government bill collection centres to explain the procedure for
carrying out digital transactions by use of smart phones etc. The trainers can train people in
layman language, avoiding the usage of complicated USSD codes of their phones.
A large segment of population resides in villages who can be a major potential user base for
digital money transactions. For this Government could recruit trained and educated youth

3. and create human touch points to spread awareness on the use of digital money in their
community. Involvement of panchayat members for encouraging others to adopt such
transactions can help enormously.
Providing clarity to merchants regarding interoperability of digital money for P2P and
purchasing of goods and services, will make them comfortable towards accepting digital
transaction and they would in turn encourage their customers towards digitization too.
‘Servers are down’ is an epidemic that still ails the digital sector of India. For the
government’s vision of a digital economy, it is imperative to address issues such as this.
Simultaneously, progress should be measured on the basis of new policies that encourage
positive economic and social change. The combination of digital money management,
FinTech, advance smart phone technology and clear strategy will revolutionise the
frictionless delivery of digital financial product to every nook and corner of the country.
Dhinendra Lohmor is an Angel Investor. He has a strong and reputed background in
corporate and investment banking and is a firm believer in the power of positivity.