Cashless India – Essay 1.
The other name for Cashless India is the Digital India. It represents a program that was launched by the Government of India. As one of the well performing economies in the world, the country has resulted into adopting cashless transactions to help in easing business transactions.
The cashless India initiative was launched on the 1st of July 20 15. It was launched to empower the society digitally and give it more knowledge. There are many advantages of a cashless economy which can be witnessed all over India.
Cashless India – “Faceless, Paperless, Cashless”
The program being one of the grandest projects, a major role of Digital India has been to achieve a faceless, paperless and cashless society. This is where individual are not required to have any face to face transactions but they can just conduct their transactions with different people all over the world. This brings in more convenience when conducting business. A paperless and cashless society is one where the people do not use tangible cash to pay for various goods and services. People are instead being urged to start using digital payment methods where they can pay for various transactions using various digital platforms.
Digital Payment Methods
There are various digital payment methods that are being widely used around India. Each of these digital payment methods will ensure that the country is able to achieve its Digital India initiative goals. Some of the most popular digital payment methods that are being used around the country include;
- Banking Cards are one of the digital payment methods that India has adopted so as to meet their Digital India goals. These are cards that one can present whenever they want to pay for a transaction and the money is directly deducted from their bank accounts.
- Internet Banking is a payment method that involves one sending their payments through online platforms. With internet banking, e-commerce has been made possible and also people ate able to buy and pay for products from any part of the world.
- Mobile payments are where people send or receive money using their mobile phones. This is a payment method that has gained popularity not only in India but also in other parts of the world.
- Banks prepaid cards are the cards in a bank that are loaded with money and you can use them to pay for various purchases. One can also use these cards to pay for the various bills that they have.
- Point of Sale which can also be termed as the point of purchase is a mobile electronic device that serves to process payments made on card which may be used to pay for a good or a service. A point of sale system can be placed in a store or in a terminal.
- ATMs stand for Automated Teller Machines. Instead of people going to the banks and withdraw or deposit money, they can use the machines to carry out various financial transactions without the use of the banking staff.
- Mobile wallet is a type of a virtual wallet which mostly comes in the form of an App. This allows for one to load the mobile wallet with money from your bank account ad you can use the money to pay for purchases.
- AEPS which are called as the Aadhaar Enabled Payment systems are systems used to carry out financial transactions such as withdrawals, deposits, and also other fund transfers.
- USSD is also a payment system that is facilitated by the National Payments Corporation of India. With this service, you can be able to transfer funds, enquire your bank balance and also view your banks statements.
What is referred to as a cashless economy is basically one where all the business transactions are carried out by the use of various digital methods and using digital devices. A cashless economy is not one where there is no use of cash at all but it is an economy where there is minimal use of paper money. A cashless economy is one where third parties like banks and the government carry out transactions on the behalf of the individual. All over the world, countries are slowly adopting cashless economies as it has been found to be more convenient and it is also encouraging investment and business activities.
Benefits of Cashless Economy
- A cashless economy helps in boosting the economy. This is because the government is able to cut down on the costs of minting money. The process of minting money is very expensive and if a country is able to reduce the amount of money that is printed, it can save more money that can be used to carry out other initiatives that can grow a country’s economy.
- A cashless economy is also essential in reducing the levels of anti-social activities around the world. Many anti-social organizations rely on using paper money. The government can easily track online payment transactions and this makes it hard for anti-social groups to carry out their activities.
- With a cashless economy, we are also able to protect the environment through the reduction of deforestation. This is because there will be a reduced number of trees that will be cut down so as to make paper money.
- A cashless economy is one that will also reduce the chances of having fake cash. The printing of fake money is a menace that every country in the world is facing.
- A cashless economy also makes it possible for labor laws to be followed to the latter. When workers are paid through their banks accounts, it is relatively easy to monitor whether companies and employers are adhering to the minimum wage.
- A cashless economy is also beneficial in helping a country meet its economic goals. With an initiative such as the Digital India, the country is able to attract more investors who will help in boosting the economy and also help it in achieving their future developmental goals.
Running a cashless economy comes with numerous advantages or pros. It is because of these benefits that the government of India started the Digital India initiative. This is an initiative that has shown many positive results since its launch. With this initiative, the government is aiming at accomplishing more secured payment systems and also allow for smooth financial transactions. There are a lot of digital payment methods that are steering India towards achieving a cashless economy. Each of these methods is easily accessible and convenient to every individual in the country to help them become part of the race towards becoming the much desired cashless economy.
By Mary (2019)
Cashless Economy – Essay 2.
A Cashless India refers to a digital economic scenerio where financial transactions are not conducted with money in the form of physical banknotes or coins but rather through the transfer of digital information between the parties involved in the transaction. The digital information is often an electronic representation of money.
The Digital India is the “flagship programme of the government of India”. This programme was launched on the 1st July in the year 2015 with a “vision to transform India into a digitally empowered society and knowledge economy”.
- In a cashless economy, there is no use of physical currency in forms such as notes or anything that is tangible.
- A cashless economy also makes use of cards that have been loaded with money value which is instrumental in carrying out transactions.
- Transactions are in the form of digitized information which is exchanged for goods or services.
- It does not require direct physical contact to carry out transactions or payments which is different from when physical notes or coins are used.
- Suspicious transaction that may have been left unregistered can be exposed or brought out to light.
- It helps reduce the tax avoidance.
- It will help reduce the chances of having fake notes.
- Lower notes printing cost.
- Promoted digital economy.
How demonetization pushed India towards being cashless
- It has influenced many Indians to not just queue at the ATMs but also adhere to Government’s digital push. Online payment services have made firms have an easy time.
- The immediate impact of demonetization is visible in the national capital where even small traders took to digital modes of payment including electronic wallets.
- Mobile wallet transactions grow multiple times and a nine fold growth in consumer transactions.
- Mobile wallet companies small and medium business to accept payments from consumers using all bank’s debit/credit cards and UPI apps. This has an influential role to play in digital transformations.
A cashless Indian society is not only good for the convenience of the user, but is very key in government efforts to eliminate corruption because digital transactions will always leave a trail. The establishment of cashless or digital India will therefore make for a prosperous society which is what every citizen wishes for her country.
By Mary (2019)
Last updated: June 20, 2019