Chennai, 20th September 2017: More than half of the train tickets in India are purchased in cash. And this is not because the train travellers necessarily prefer it that way, but the sale of reserved train tickets through authorized agents (contributing an estimated half of reserved ticket sales) continues to be in cash. The primary cause for this is the dis-incentive eco-system which rewards cash while penalizing online transactions. This finding is based on a countrywide survey of consumers and ticketing agents.
The study found that the unrealistic rule of imposing a cap on Payment Gateway (PG) charges at 0.7% (for train tickets prices less than Rs. 2000) is completely out of tune with the average bank charges, which the agents have to pay. According to RailYatri, the typical PG charges varies between 1.5% to 2% depending on the provider, with most providers falling on the higher side. Agents, understandably, are unwilling to pay for the difference over 0.7% to the payment banks from their own pocket. Any instance of charging above 0.7%, even if the money is finally kept by the bank, exposes the agent to steep fines and penalties. Hence their preference for cash.
“Nearly a crore train tickets every month are being booked in cash and this doesn't opine well with the well-intended and ambitious plan of the Government to move the nation towards Digitization and Online Payments However, the good news is that this can be quickly fixed by revisiting the rules. These agents are an integral part of small businesses ecosystem and the system needs to incentivize them to accept and look for customers who are willing to pay digitally-thus fulfilling the Digital India dream. With the new management at the helm in the ministry, we sincerely hope a concerted effort is made in this direction," says Manish Rathi Co-Founder & CEO RailYatri.
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