Ordering a product from an E-commerce site and realising that you have Rs. 500 and Rs. 1000 rupee notes make you drive crazy but a mobile wallet and that incoming message that you’re ‘Transaction Successful’ as an alternative payment method relieve your heart. Cashless India or an economy with lower cash transactions seems to be unreal when we used to look at the older picture of the economy. But, the current scenario is deviating Indian economy towards a cashless future! The Indian economy is experiencing a series of deviations after the midnight of November 8, 2016. With the aim to revert back the black money to the government of India, the signs are likely that cashless is not very far!
WHAT IS CASHLESS?
Cashless economy or cashless means all the transactions carried out between two individuals will occur by payment through payment gateways or through the plastic money. It is done with the primary aim of uncovering the non-registered transactions. The Indian government with another aim to promote the economy through non-cash transactions has introduced mediums such as:
- Banking cards
- Mobile Wallets
- Banks Pre-Paid Cards
- Point of Sale
- Internet Banking
- Mobile Banking
- Micro ATM’s
Reducing the economy’s dependence on the cash and making it more deviated towards these mediums would result into the betterment of the country and the economy.
The cashless economy has importance attached to it in the following ways:
- The cashless economy needs to be present as the financial year of 2015 experienced the hefty amount of Rs. 21,000 crores just on the printing of the cash into the economy
- The other need for the cashless economy is that every shady transaction that is left unrecorded will now comes into the picture making India one of the fastest-growing economies in the world.
- A cashless economy is required to make the transactions more convenient for the layman rather than carrying the bulk of cash in the wallet along with plastic money.
- Cashless economy is needed to reduce the taxes that are charged by the government due to the lack of funds in the government bodies
- Cashless India is important because it will decrease the tax avoidance and the money laundering cases subsequently resulting in the benefits for the customers
- Cashless is needed as 1 out of 7 notes present in the economy is fake which results into a bad image of the economy.