Have you ever heard the term ‘cashless economy’? Well, the word has a major significance to cash and its equivalents.
Cashless economy means an economy that has all its dealings and transactions using cards and online medium. The cashless economy has a major emphasis on not using cash in its transactions.
So, if we consider even hypothetically, can India become a cashless economy? As per research and facts Indians traditionally indulges to save and spend in cash and raw money. In India about 78% of all consumer payments are made by cash. If we compare the scenario of spending or storing creditability in developed countries like U.K and U.S.A. only 20%-25% transactions are made in cash rest is done through online or by cards.
Well, no economy in the world is perfect, but the cashless economy has its own perks and benefits. Some of the benefits of cashless economy are:
• No need to transmit cash.
• Black coinage cohort will be stopped.
• Fake currency notes will be an item of the past.
• Reduced occurrences of tax escaping, since the entire operational history of an individual is accessible.
• A lot of obscure money gets capitalized in actual plantation which bloats the bills of real estate market, going cashless would control the prices.
• Sanitation is another important factor when currency notes are exchanged.
• Greater efficiency in wellbeing programs, as money is wired directly into the books of the beneficiaries.
• More slide in business processes and money transfers.
Though India lacks the idea of making a base under cashless economy, but the condition will certainly make a change with proper aspects of civilization. India has a perception of making cash as a medium for transactions but it’s not late for some urban changes to slide by.