India took a huge step forward in making its’ economy cashless when our honorable Prime Minister, Mr. Narendra Modi scrapped Rs.500 and Rs.1,000 notes in 2016. This initiative of demonetization proved to be a great catalyst in making India a cashless economy. With such scrapping and demonetization came the policy of making “Digital India”. The main objective behind this policy is to encourage a cashless economy where all the transactions are carried out digitally. An economy where no liquid money is used but the cashless transactions are carried out using plastic cards or by electronic means.
In a cashless economy there is an ease of transaction as one can shop, pay his/her bills, manage his/her finance at any place and at any time with the help of computer, smart phone or a tablet.
Let us take a look at the 10 amazing benefits of making India a cashless economy.
1Reduced circulation of liquid money
Since in a cashless economy all the transactions take place via digital means there would be a reduced circulation of liquid money. And consequently, the expenditure on printing notes and minting coins will get reduced to a substantial extent.
2Convenient and time-saving
Reduced liquid money leads to buying and selling of products online which is way more convenient than carrying bundles of cash every time with you. Online shopping not only saves time & energy but offers huge discounts and cashbacks.
3Ease of tracking payments
With all the transactions taking place via electronic means, it becomes easy & hassle-free to keep a track of payments made.
4Curbing of black money
A cashless economy consisting of only white money transactions vi electronic means would prove to be imperative in curbing the black money.
5Carry cash in your smartphones
In a cashless economy there is an ease in carrying money. The money can be easily accessed via plastic cards such as debit/credit cards or via electronic gadgets such as mobile phones/tablets. Such plastic & electronic means are easy to carry when compared to cash/liquid money.
6Reduced theft and burglary
Reduced circulation of liquid money and increase electronic transactions would lead to reduced or almost no theft or burglary.
7A sharp decline in illegal activities
Illegal activities such as human trafficking, money laundering, drug dealing, corruption, prostitution, etc., won’t be possible due to the non-availability of liquid money.
8Enhances the tax base
Digital transactions can be easily monitored and this in turn, will facilitate in enhancing the governmental tax base.
9Improved hygiene
Bank notes and coins carry germs as they are passed from hand-to-hand while electronic gadgets can offer an improved hygienic transaction.
10Boosted economic growth
A boost in an overall economy of a country is visible once it steps towards going cashless. As there is an increase in spontaneous buying while doing cashless payments, it results in an increased GDP.
This article has been inspired from here.
