Cashless Donations At Religious Places? FRTWA Pushes Digital Shift After Ayodhya Donation Row

Mumbai: The investigation into allegations that staff at the Ram Mandir in Ayodhya siphoned off cash donations has reignited a longstanding debate over how money offered at places of worship should be collected and accounted for. Citing the controversy, the Federation of Retail Traders Welfare Association (FRTWA) has urged the Centre to encourage all religious institutions — including temples, mosques, churches, gurudwaras and other charitable bodies — to shift entirely to digital modes of receiving donations.

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Push for digital donations

The traders' body argues that replacing cash offerings with digital payments would significantly improve transparency, create a reliable audit trail and minimise the risk of financial irregularities.

Religious institutions, however, say that while digital donations are growing steadily, making them compulsory would undermine both the convenience and the spiritual significance associated with traditional cash offerings.

In a letter to the Prime Minister's Office, FRTWA president Viren Shah said India's Digital India programme has transformed the country's payment ecosystem, making the Unified Payments Interface (UPI) one of the world's most successful digital payment platforms.

"If India can go cashless in almost every sphere of life, why should donations still be accepted primarily in cash?" Shah asked.

He suggested that every religious institution should prominently display UPI QR codes and provide facilities for donations through UPI, debit and credit cards, bank transfers, cheques and demand drafts.

Transparency and accountability

According to Shah, reforming the system of religious donations would serve the larger national interest by ensuring greater financial accountability while discouraging the use of unaccounted money.

"Digital donations will create a proper audit trail for every contribution, reduce the handling and storage of large amounts of cash and minimise the risk of diversion or siphoning wherever substantial cash collections are involved," he said.

Shah also believes greater transparency would strengthen public confidence in charitable and religious institutions while furthering the objectives of the Digital India mission.

"The suggestion is not intended to discourage faith or charity. It is meant to make charitable giving more transparent, secure, accountable and fully aligned with the vision of a Digital India," he added.

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Religious institutions raise concerns

Temple authorities, however, say the issue is more complex than simply replacing cash with technology.

Hemant Jadhav, manager of Mumbai's Mumbadevi Temple, said digital payment facilities are already available and increasingly popular, but donors should continue to have the freedom to choose how they contribute.

"Making it compulsory for all donations to temples and other religious places to be made online is wrong. The choice should be left to the donors," Jadhav said, pointing out that many devotees, particularly senior citizens, still do not use digital payment platforms.

Temple priests also argue that cash offerings carry religious symbolism that cannot easily be replicated through electronic transactions.

Naresh Pujari, Bhagwatacharya at Nashik's Kalaram Temple, said physically placing an offering before the deity remains an important part of Hindu worship.

"There is sanctity in handing over a cash donation with the right hand. This is a time-old tradition. Giving donations through a bank will make the entire ritual a transaction," he said.

Digital payments gain acceptance

Even so, religious institutions acknowledge that digital giving has gained significant ground in recent years.

At the Mumbadevi Temple, online payments are estimated to account for nearly one-fifth of total donations, while at the Kalaram Temple, around half of all offerings are now received through UPI.

Representatives of other faiths echoed the view that digital payments are becoming an increasingly important part of religious administration.

A trustee of a mosque in Mahim said the institution now receives all donations through QR code-based payments.

"Cash creates a lot of issues. Online donations are easy for accounting purposes," the trustee said.

Father Joseph D'Souza, Parish Priest at the Church of Our Lady of Health, Kalbadevi, said although cash offerings continue during Masses, larger donations are generally received through NEFT and other digital payment modes.

Tradition versus technology

The debate highlights the challenge of balancing financial transparency with religious practice.

While supporters of cashless donations see them as a natural extension of India's digital transformation and a safeguard against financial misuse, many religious leaders insist that technology should provide an additional option — not replace a centuries-old tradition of offering cash as an expression of faith.

As India's digital economy continues to expand, the question may no longer be whether places of worship should accept digital donations — they already do — but whether the future of religious giving should be exclusively cashless or continue to accommodate both tradition and technology.

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