Digital Push: Banks want telcos to improve connectivity

MUMBAI: Banks, which have been aggressively pushing digital transactions, have asked government to nudge telecom service providers to ensure smoother connectivity to enable a more efficacious transition to a cashless economy.

Senior bank officials have informed the government that patchy connectivity is currently a hindrance as they strive to onboard people to e-platforms.

Efficient telephony data is a prerequisite for digital transactions such as payment using unified Payment Interface (UPI), m-wallets or mobile banking. Customer experience, particularly for first time users who are migrating from cash to digital transactions, will be significantly affected if the connectivity is weak.

“Data connectivity is essential for digital banking to succeed. We have conveyed to the government that telecom companies have to ensure that data connectivity is there all the time, everywhere and that it is stable. It has to be a joint effort,“ said a senior bank official who did not want to be identified.

One of the suggestions banks have made to the government is to create a national highway for banking transactions. Such a highway would ensure that telecom companies give priority to banking transactions which will instill confidence among customers, a senior banker said.

“What the government has to ensure is that the connection is available, reliable and stable. If these three things are not there, then the performance degrades rapidly,“ said a senior official at a large commercial bank.