What will one do with cashless economy with all virtual money becoming useless with one small natural disaster: MSME on TN Cyclone

Chennai, Dec 15 (KNN) The micro, small and medium enterprises (MSMEs) in Tamil Nadu couldn’t have had more challenges, as the cashless informal sector which is trying hard to adopt the digital payment modes for doing business has no electricity for last 36 hours.

The situation has left them with no cash, no mobile, no internet and hence no e-payments too.

As an aftermath of cyclone Vardah, the electrical lines in affected districts got completely disrupted. The three most affected districts were - Chennai, Thiruvallur and Kancheepuramin where shops, hotels, restaurants and petrol pumps were not accepting payments through cards or other digital means due to “network failures”.

The micro and small entrepreneurs were also amongst the worst hit.

Talking to KNN, CK Mohan, General Secretary, Tamil Nadu Small and Tiny Industries Association (TANSTIA) said, “We were already going through hell due to demonetization and now the people are not even able to do transactions online. They are left with no money for small purchases also.”

He said, now with no electricity and no telephone connections, the situation is worst.

“Most of the ATMs are also not working; leave the ATMs there is no money in the banks also and how can you make e-payments without electricity and internet,” Mohan said.

Mohan said so far the state has received no help from the Centre on this and the state government alone is managing it.

“Within the state there is an announcement about Rs 500 or 1000 crores but in no way it will help the industries,” he added.

MSME entrepreneur Dinesh Chandra Tripathi, Managing Director, NSD Global Trade Pvt. Ltd, said, “What will one do with cashless economy with all your virtual money turning out to be useless with one small natural disaster. How are you going to survive during these conditions if things don't get rectified in the following days? What if followed by one more cyclone?”

He said, “No economy can be 100% cashless, cash is required for an economy. With one natural disaster the entire system has collapsed. ATMs are not working, e-wallet, e-payment gateways are not working,”

Tripathi, who is also a Chief Executive Member of FISME, said, “The government should now take active measures to give more and more cash to the state. ATMs should have more cash, micro-ATMs should be sent to remote locations, cheque books should be immediately issued to people who have accounts, and banks should work for extended hours.”

With the crisis occurring at a time the country is still dealing with the demonetisation effects, the cyclone has further hit the government’s push for cashless economy. (KNN/ RAS)