India and a cashless society?
View
- Hetvi Shah
India is a society where change is accepted easily but adapted over a period of time. India uses too much of cash transactions where in only 5% of payments happen electronically. The entire purpose of the government introducing the term demonetization into our lives was to eradicate black money mainly. There are several reasons but the most important ones are to pool in all those people who were still not paying their taxes and also to make India a cashless society. A cashless society is self-explanatory: An economy in which all payments and transactions are done using cards or by digital means. The circulation of physical currency is minimal.
Going cashless means avoidance of taxes. Every transaction is recorded and there will be a smooth flow of managing accounts. Most of the black money, as seen, is invested in real estates and when the economy goes cashless, the movement of black money will be curbed and real estate prices will reduce.
In laymen terms, it is safer to carry around a credit card rather than cash. If your credit card is stolen, it can easily be blocked but once your cash is stolen, it is lost forever. This may not be much but it is easy to ward off borrowers and pay back the exact amount without worrying to get back change from shopkeepers. A written record will help you keep tabs on how much, on what and where you have spend your money, resulting in a better budgeting system. Controlled spending can result in higher investing. This will in turn increase India's GDP and attract hot money in-flows.
India is changing, we just need to fasten the process by adapting faster and accepting the difficult times that this change is bringing us now because change is gorgeous at the end. Digital transaction is what the world is becoming now or rather, what it already has become so why should India stay behind and just watch? We are what the entire world should look up to.
Counterview
- Mohit Damani
India is a growing country where the higher officials of the country are working endlessly towards building a better society.
Going cashless will make the growth of our society and economy harder. Going cashless means making payments through online transactions done through banks and other forms of online payment portals like Paytm.
The people don’t know that there are lot of flaws when it comes to cashless payments. With the growing amount of cyber crime and hacking being reported it is highly unsafe. Hacking has reached such a stage where the hackers are able to hack into accounts and transfer the money to their source accounts without leaving a trail. This means that living in a cashless society increases the risk of loosing the money held in the bank accounts.
The lower middle class and the sections of society below them who’s business and family runs on the constant outflow and inflow of cash will suffer.These sections of the society most often avail cash discounts on majority of the consumer goods they purchase.
When online transactions are done there is a interest cost that is added to it which not only increases their expenditure to the cost of the good but increases it by adding the interest cost, which is a considerably high amount for them to pay. People would prefer a cash transaction as it would turn out to be an easier and a cheaper way to make the ends of the transactions meet.
More over the important question to be asked is, are the banks ready and good enough for a cashless society. A society which works cashless needs its bank to have a good infrastructure and work force and a well organised portal to handle millions of transactions everyday and also be prepared to open lakhs of more accounts of those illiterate people who have barely any knowledge about banks and online transactions.
No comments:
Post a Comment