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Government Establishments Lag Behind in UPI Adoption in A & N Islands

Tarun Karthick

Campbell Bay, 12 November 2024

Despite India’s sweeping digital payments revolution, government-operated establishments across the Andaman and Nicobar Islands are lagging in adopting UPI (Unified Payments Interface) as a payment option, particularly in rural regions. While UPI has gained widespread acceptance across the nation and even in the country’s remote areas, cash remains the preferred payment method at many government services and businesses on the islands.

The Andaman and Nicobar Islands Integrated Development Corporation Ltd. (ANIIDCO), which manages petrol pumps and wine shops throughout the region, reflects this gap. For instance, UPI payments are accepted at the ANIIDCO petrol pump in Goal Ghar, Sri Vijaya Puram, yet Campbell Bay and other rural areas often lack this option. Similarly, ANIIDCO wine shops, even in urban locations, seldom offer UPI payment despite being equipped with modern POS devices capable of processing digital transactions. The absence of clear UPI acceptance signage at these outlets further adds to the uncertainty for customers.

State Transport Services (STS), responsible for operating bus services across the islands, also continues to rely solely on cash transactions for local ticket purchases. This stands in contrast to the convenience offered in metropolitan cities like New Delhi, where commuters can buy bus and metro tickets through UPI on the One Delhi App, built over the ONDC platform.

Another prominent example is the STARS e-Ticketing Portal for purchasing ship tickets online. Although the portal previously offered a UPI payment option, it was removed for undisclosed reasons and has yet to be reinstated, leaving travellers without the ease of UPI payment for purchasing ship tickets.

The reluctance to adopt UPI within local government establishments stands in stark contrast to the Government of India’s active promotion of UPI payments on a global stage. UPI, celebrated as a flagship innovation in India’s digital payment landscape, has become integral to daily transactions for countless Indians, reducing reliance on cash and enhancing transaction convenience.

Despite the visible success of UPI across the country, where even remote regions have embraced the system, the islands’ government departments and public services have been slow to integrate it into their operations. This slow adoption of digital payments is not only a hindrance to convenience but also sends mixed signals as the central government showcases UPI to international dignitaries as an example of India’s technological advancements.

To align with India’s digital-first vision and enhance public convenience, government departments and establishments in the Andaman and Nicobar Islands should expedite the integration of UPI payment options across all services.

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