The Andhra Pradesh state government is contemplating a novel idea of providing free mobile phones for economically-backward sections, to facilitate them make use of cashless transactions, in the wake of cash scarcity following demonetization.

Chief Minister N Chandrababu Naidu came up with this proposal during a review meeting with RBI officials and bankers today in Vijayawada. As everybody needs a mobile phone for digital transactions, he said he want to implement this idea and distribute mobile phones.

Naidu is particularly cautious about the problems being faced by December 1 for payment of salaries and various social security pensions. By that time, he asked officials to ensure about 70 per cent government transactions should be digital by the month-end.

The state government is exploring novel methods to cultivate habit of cashless transactions, among those sections who are not familiar of it. In Rythu Bazar, located at Swaraj Maidan, Vijayawada, officials are making efforts to make farmers resort to cashless transactions. In the absence of sufficient number of Rs 100 notes the regular transactions went to a lowest level.

Andhra Bank and HDFC Bank have been supporting farmers and consumers by installing Micro ATM. Andhra Bank encouraging them to make use of mobile app from their mobiles. They are expecting within two days, they may extend this facility to most of them.