India police begin shift to cashless payments

In another move that furthers India's movement away from cash, police in Pune plan to initiate a cashless policy by the end of the first week of January.

Payments made to police for traffic violations or securing a police escort will be accepted through credit or debit cards, the India Times reported Dec. 28. Pune is the second largest city in the state of Maharashtra and ninth most populous city in the country.

Fifty card readers will be deployed to police stations in Pune, making them cashless transaction facilities. Each of the 25 traffic divisions in the city will have two swipe machines.

An increase in card transactions has been expected since the country's decision last month to remove high-denomination bills from circulation as a way to curb crimes such as tax evasion.

Anindito Mukherjee/Bloomberg

In the near future, the police will explore options like an online payment gateway or a mobile application for payments, the Times reported.

Currently, the police accept cash and checks; if an offender does not have the cash to pay a fine, the police issue a temporary license. After visiting the traffic division, the offender can pay the fine later and get back the driver's license.

The cashless directive will provide more payment options and help the police handle and administer payments, deputy police commissioner Sheshrao Suryawanshi stated in the report.