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#Take_a_look
When we think about economy of India after demonetization our mind strike for cashless transection just because of our Prime Minister, on 27th Nov 2016 Prime Minister in the radio programme ‘Mann ki Baat’, while addressing the country said, he wants the country to have less cash transactions, which will eventually make India a cashless economy altogether.
Here one question arise "What will be the advantage and disadvantage of cashless transection?"
Before explaining advantage and disadvantage of cashless transection in India I want to discuss about first country which started cashless transection.
Sweden started the journey towards cashless economy since many years. Take a bus ride, buy a magazine or a chewing gum, digital payments are accepted everywhere. There is a belief in the country that if you have to pay in cash, something is wrong. That sounds quite futuristic until you know the truth. The Interest Rate at Sveriges Riksbank, the central bank in Sweden is -0.500% since last February.
Sweden is the first cashless economy and has negative bank interest rates. Can Indian middle class handle it?
Now go through the advantages of cashless transection in India:
1.Convenience:
*You will no longer need to carry wads of cash, plastic cards, or even queue up for ATM withdrawals.
*Easier spending option for traveller.
*Freedom to transact whenever and wherever you want.
2.Discounts:
*Service tax on card transactions up to Rs 2,000 is one of the incentives provided by the government to promote digital transactions.
*Saving on rail tickets, highway toll, or purchase of insurance can help cut your costs.
*Discounts offered by mobile wallets like Paytm, as well as the reward points and loyalty benefits on existing credit and store cards.
3.Tracking spends:
*If all transactions are on record, it will be very easy for people to keep track of their spending. It will also help while filing income tax returns.
4.Lower risk
If stolen, it is easy to block a credit card or mobile wallet remotely, but it’s impossible to get your cash back.
Drawbacks of cashless transection in India:
1.Higher risk of identity theft:
*With the rising incidence of online fraud, the risk of hacking will only grow as more people hop on to the digital platform.
*Given the tedious process and poor grievance redressal, people will have no easy recourse if they lose money online.
*There is no stringent legal process to deal with this kind or scale of fraud.
2.Losing phone:
Since you will be dependent on your phone for all your transactions on the move, losing it can prove to be a double whammy. It can not only make you susceptible to identity theft, but you could also be rendered helpless in the absence of physical cash or any other payment option.
3.Overspending:
*While there is no denying the convenience of card or mobile wallet transactions, it could open a spending trap for an unsuspecting population.
Besides, a high penetration of the digital payment system is contingent on the fact that the same amount of cash does not come back into circulation. If it does, people are more likely to switch back to the former ease of using cash as it is a habit that they may find difficult to break...
