"The money on purchases will be debited to the person's bank account," Chief Secretary R K Srivastava told the newspaper. The authorities also expect that the new scheme would minimize pick-pocketing.
There will be no extra charge for the transactions performed.
According to the newspaper, cash payments will also remain in place at small vendors. The innovation is being introduced in order to develop the system of cashless payments in the country.
The move comes just two weeks after Indian Prime Minister Narendra Modi announced demonetization of 500 and 1000 rupee ($7.3 and $14.6) currency notes, making them invalid to help counter black money, fake currency business and corruption. According to him,the people holding the invalid notes can deposit the same in banks and post office accounts from November 10 until December 30.
