On SMS charges :
1) Vodafone M-pesa and similar services, might be used for under INR 1000 transactions like http://www.techweez.com/2016/11/04/m-pesa-kadogo/ eg; below INR 67 transaction free in Africa. Which has following benefits : -
a) M-Pesa is a branchless banking service; M-Pesa customers can deposit and withdraw money from a network of agents that includes airtime resellers and retail outlets acting as banking agents.
b) Support may also go to local vendors.
c) Cyberattacks are difficult due to large number of small amount transactions. Kindly correct my assumptions based on your views.
2) Government benefits is around $100 Billion so despite subsidy it may turn profitable. Assuming cashless is $100B startup for a year : -
a) $40B : Blackmoney including tax evasion, counterfeit currency and tax reform.
b) $40B : $1 < INR 60 due to payment certainty and efficiency is 10% of GDP gain. Also, stock market gain due to certainty.
c) $20B : Ease of business, consumerism and other businesses around it.
d) Warning : Counter-CyberAttacks measure must be taken.
3) Currently, the challenge is Planning, Implementation, Execution and repeat the cycle (Plan-Implement-Execute) in iterations. So, small transaction will give visibility of initial roll-out to solve chaos. Small transaction (< INR 1000) roll-out may provide consumer delight in rural for inclusiveness.
Thanks Gaurav. But, multiple support vehicles will be required because things fail and get punctured.