As the 30 December deadline for scrapping all the demonetised Rs500 and Rs1,000 currency notes nears, the government is looking at a new ordinance to the completely ban usage of these old bank notes.
According to News18 report, the government is planning for a new ordinance on holding of old notes and is likely to come up with it before 30 December. The government is also likely to impose tough penalty on holding of old notes, the report said.
The government will also increasingly fall back on its pet project 'Aadhaar Payment App', which is widely believed to replace the debit / credit cards and point of sale machines (PoS), which are now considered to be the backbone of the cashless society.
It's also speculated that once the app is launched, service providers like card companies such as Mastercard or Visa which charge fee for payments will receive a big setback.
The app will be very affordable for the merchants in villages.
The Aadhaar Payment App can easily be downloaded on Android phone available with the merchant.
The merchant needs to download this app on the smartphone connected to biometric reader, which currently costs around Rs 2,000.
The Aadhaar number of the customer will then be fed into the app. Then one has to select the bank through which the transaction will take place, and the biometric scan will work as a password for the transaction to be authenticated.