What are the advantages of the cashless economy like India?
The dream of the cashless economy now seemed to come true after the 8th November 2016. As we all know on 8th of November 2016 was the day when the government of India took a decision to move into an era of the cashless and digital transaction.
With the decision of demonetization, our country has taken its first firm step to move into the world of cashless economy.
As still, we have a long way up to go ahead with this new cashless economy, there are many points to discuss this newborn technological way of the transaction for a common man.
Here, we will discuss the top 5 advantages and disadvantages of cashless economy. This has brought up with its coming in a developing country like India.Like there are many pros and cons of demonetization, there are also pros and cons of cashless economy. But This will really lead India to a super Power.
SO, HERE WE BEGIN WITH THE ADVANTAGES OF CASHLESS ECONOMY
1. LESSER OR NO TAX EVASIONS
This has been the biggest ever advantages of the cashless transaction in Indian Economy. Whenever you will do any transaction I.e. you buy or sell something your tax on that item will be paid automatically. And this will be kept recorded in your bank account.
Thus, at the end of fiscal year, the tax on your whole income and transactions done will be automatically deducted by the income tax department as it will be monitored directly by government and banks.
Thus it will help in reducing tax evasion to a greater extent.
2. FAKE CURRENCY PROBLEM SOLVED
As of now, the government has solved the fake currency circulation in the market as no older denomination notes are valid now.
For now, whatever the notes available in markets are original and genuine as the fake currency is totally stricken down out of the market.
It will take time for wrongdoers’ to print the fake currency of new denominations again.
So, for now, the government has sufficient time to take firm action against their people and make the economic market more clear and transparent for its people.
3. BANK WILL HAVE MONEY FOR DEVELOPMENT
Earlier, many people were keeping money in their home without depositing it into their bank account. The number of these people is quite high as they basically come from that section of Indian society. Which is called as a low middle class and lower class that does not have a bank account.
Banks has the most advantages of cashless Economy when there are more cashless transactions then Bank has more Funds every time.
This becomes an important reason Indian banks are suffering from the NPAs. For the cashless transaction, the bank comes into play as people will deposit their money to banks for their day to day transfer and transactions.
4. LESS CRIME AND TERRORIST ACTIVITIES
As things are getting cashless, there will be fewer people using cash in paper currency to facilitate their transaction.
For every type of transaction, you will use Bank as the channel to get it done. Now if you are a right person with a good moral character, the bank will open your account. And if you don’t have a proof of identities like aadhar card or pan card, they will deny opening. And also on all the bank accounts, the government will keep a watching eye to kill down any misuse of this channel.
The fresh example to this, the example of “stone pelting” in the areas of JAMMU AND KASHMIR. Where the extremist people pay the students and other people to throw stones at Indian forces. This activity was drastically reduced in the area as people were not having cash invalid denominations to pay for this kind of activity.
5. E-COMMERCE WILL INCREASE
The most benefited are the common people who do the transaction with e-commerce giants like Flipkart, amazon, snap deal etc. Now, the government is finding ways to make this transaction platform more secure and more reliable in an online way.
The government is developing a common platform. A common app like BHIM (BHARAT INTERFACE FOR MONEY) for its common people to make online transactions easily.
Thus, every common man is able to do the transaction in a very secure manner. Dealers are sitting thousands of miles away from him and gets him the product at right price oat right time. Above were some advantages of the cashless economy but there is also an adverse effect of these technologies.