Let us look at the positive side of our nation moving towards cashless economy

Our country is tardily moving towards a cashless environment after demonetisation whereas the initial awe and confusion have created a rapid active commotion. Now the question is will the intensity of online transactions provide a state of suitability and touchable benefits or just add stress and panic?

For moving towards a cashless economy, the government has come up with a rash of discounts and free schemes on digital transactions. However, will these be substantial enough and, along with other benefits?

Pros

Suitability

To make financial transactions easy, it is probably the biggest innovation to go digital. People do not need to carry stacks of cash, plastic cards, or even queue up in front of ATM for withdrawals. Cashless economy is also a safer and easier podium for spending options when people are travelling. This will have an enormous benefit if the lower income group are kept aside, who will be facing a huge challenge. Nevertheless, for the rest of the nation, it will be simple and smooth.

Tracking spends

Suppose all transactions are on record, it will be very easy for people to keep track of how much they are spending. It will be of great help while filing income tax returns and, in case of a examining, people will find it easy to explain their spending. Besides the tax, digital economy will have a good impact on budgeting.

Lower risk

If a persons’ ATM card is stole, it is easy to block it or mobile wallet remotely, but it is impossible to get cash back. In that sense, the digital option offers limited security. This is especially true while travelling abroad, where loss of cash can cause great peril. Besides, if the futuristic cards evolve to use biometric identity like fingerprints, eye scan etc., it can be extremely difficult to copy, making it a very safe option.

Small gains

It may not seem like much of an advantage, but being cashless makes it easy to ward off borrowers. One more aspect that is positive is that people can pay the exact amount without worrying about not having smaller denominations for getting it back from shopkeepers.