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Geeta Valija
Geeta Valija
Marketing Management MBA Student | Passionate About Growth Marketing | Seeking Opportunities to Grow & Learn |
Published Mar 28, 2024
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A cashless economy is an economy in which digital transactions, such as mobile payments, debit cards, credit cards, and online banking, replace cash transactions. Now we are able to see that the physical cash is gradually phased out.
The future of cashless economy in India is immense, it holds several benefits such as Reducing the cost of printing and handling the cash, and by reducing this it helps in saving our natural resources. It also helps in reducing the Pollution as by printing the notes, a lot of machines are required, and a lot of wastage is being drained out in water and this pollutes our water, our atmosphere and the machines also creates a lot of noise, so with the help of digitalization it has become possible to save our natural resources, reduces tax evasion by making online payments. There is a record of each and every transaction so an individual or any entity cannot escape from paying tax. It not only helps in import and export, but it leads to effective and faster transactions, there will be continuous flow of cash when we make/ receive money online which can boost our economy. Additionally, it also eradicates corruption as through online transactions tracking and tracing of financial transactions has been possible.
India has been making significant strides towards becoming a cashless economy in recent years. The government's demonetization drive in 2016 played a significant role in driving the adoption of digital payments in the country.
The government has also launched several schemes Such as Ladli Lakshmi Yojna, Ladli Bhena Yojna, etc. Various Scholarship schemes like Medhavi, Chatravati Yojna etc. and with the help of digitalization only, the citizens who have registered for the schemes are able to get the money in their bank accounts. There is a digital payments growth due to initiative like UPI (unified Payments Interface) andmobilewallets.
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The government initiatives have been actively promoting digital payments through campaigns like Digital India and initiatives such as Bharat bill payment system (BBPS) and National Electronic Toll Collection (NETC).The growth of Fintech Startups and innovation in digital payment technology drives further adoption of cashless transactions. Stock Market is the best example. Each and everything is digitalized in stock market.
Despite progress, there are some dark sides which to be considered like low digital literacy, lack of digital infrastructure in rural areas, and the high costs associated with digital payments for small merchants, half knowledge regarding digital payments, building cyber security measures and fostering trust among users regarding the safety of digital transactions are crucial for the sustainable growth of cashless economy.
Nevertheless, with the continued growth of digital payments in India, infrastructure development, cybersecurity measures, regulatory support, and ongoing education and awareness programs leads the country will move closer to becoming a cashless economy in the future.
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Loveneesh Bansal
Founder at BSD | Co-Founder at Metaguard | On a Mission to Make every campus Safe and Secure by Smart Technology | Inventory | ERP | NFC | RFID | Barcode | Biometric | Smart Card Solutions xpert
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