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.
50 days of Demonetization passed. On 8 November 2016, Prime Minister of India had announced the Demonetisation of 500 and 1000 rupee notes.
Banks Had taken the old currency notes of 500 and 1000 rupees until the 31st December 2016. These can be now submitted only to RBI with the Reason.
Whole India is taking this Decision Very Seriously. Moreover, people had suffered a lot because of the decision. Now we want to know about 50 days of demonetization Pass or Fail.
Current BJP government declares it as a Successful Project while all other opposition Parties confirm it as a big Failure. We will give you some Points by which you can judge yourself that 50 Days of Demonetisation – Success or Failure.
Below the points shows 50 days of demonetization Pass or Fail.
A point that shows those Fifty days of Demonetization is successful:
All old and fake 500 and 1000-rupee note are out of the system.
All Money deposited into Banks that will give the economy a new Power.
People are shifting towards the Cashless economy which makes it more Strong.
Black Money will be out of the system.
Big cash Transactions will stop.
Terrorist activities will minimize. These are showing the demonetization as successful.
Big Amount of Black money declares during this period of 50 days of Demonetisation.
All the Departments of Government were active. In addition, seize huge black money from corrupted people.
Points that make fifty days of Demonetization Failure:
Banks had made it adverse. Most of the Bankers make forgery and does not work honestly.
Demonetisation was really a Great India Making Project. Nevertheless, Some People make it Failure for their own Pocket.
As per Media report, about 97% of the Old 500 and 1000 rupee notes had deposited into banks.
About 105 people died due to demonetization.
There is the lack of cash in the market due to which Business is affected.
Many factories and other Business are close down. It showing the demonetisation failure.
This is the report on 50 days of demonetisation – pass or Fail.
Use old 500 Rupees notes after demonetization. After 30th December 2016, you can not use the old 500 and 1000 rupee note at any place. There is urgency in the country.
The whole country is facing the problem of Cash. We want to know that where to use old 500 rupee notes after demonetization. In India, there is cash transaction of about 97%. Those people are the pond of holding the Cash in Hand are also very high.
Everyone is searching for the alternatives of Exchange of 500 and 1000 rupee note. After 24th November, Rs. 1000 will only be submitted into banks. 500 rupee note will be accepted at many places.
I know you must want to know how to exchange old 500 rupee note. How to convert old 500 rupee note into valid currency after Demonetization Process?
Use Old 500 Rupees Notes after Demonetization
Current Biggest Problem is that there is no exchange of Money now. But there is a chance to use you old 500 rupees note.
Where to use old 500 and 1000 rupees notes after demonetization in India?
Govt of India had announced that there will be no exchange of old 500 and 1000 rupee notes from 25th Nov. 2016.
But one can use old 500 rupees, not at following Places:
You can pay these to toll Plaza.
All petrol pumps will accept the old 500 rupee notes until 15th December after demonetization in India.
You can also pay college fees of states University.
Use old 500 rupee notes for court fees.
Make Prepaid Mobile recharges up to Rs 500
Now you can purchase groceries from co-operative stores under State and Central govt. This will be a great relief after demonetization.
Pay Railway tickets booking at railway station counters.
All government Hospitals will accept the old currency.
Water Bill and electricity Bill payment can be adjusted. This will be a place to use old 500 rupee notes after demonetization in India.
Buy Medicines from Medical Stores with qualified doctor’s prescription.
May, not anyone have to use at this place but one can use old 500 rupee notes at crematorium grounds.
Make Payment against LPG cylinders.
You can also use old 500 rupees notes after demonetization to buy of seeds from nominated state-owned outlets.
Now, After 31st December 2016 You can not use old 500 and 1000 rupee notes anywhere except to submit in RBI.
With a great step towards the Cashless economy and to fight with black money the government has introduced Demonetization with a Positive thinking. But there are both advantages & Disadvantages of Demonetization discussed earlier. In my opinion, government is giving ample space to use the old 500 rupee notes after demonetization. Above are the areas to use old 500 notes after demonetization