Impact of cashless economy in India.
The introduction of the digital society campaign is a revolutionary step towards a better lifestyle.
In India, the retail sector experiences very high volumes of money transactions. As a result, we see a rapid change in its payment systems as adopted by various merchants. The entire process of moving from cash-driven transactions to a cashless economy began at full pace. But what is the cashless economy? The cashless economy is the newly adopted transaction system in which customers make payments using credit/debit cards, net banking and other digital means. It minimizes the circulation of physical currency and encourages the settlement of a cashless society.
India is promoting a cashless economy for the following reasons.
A cashless economy strengthens the business sector legally as they perform better audits, ensuring no hidden liabilities. With the increased use of e-payment methods, various wallet holding businesses are enjoying advantages.
A cashless economy gets the support of information technology (IT) for boosting transaction performances. Advance technologies like biometric and other security services encourage secured and transparent transactions.
A cashless economy encourages transparency and accountability because every transaction stay recorded with the customers, buyers and the regulatory bodies. It leads to better business and investments idea for the entire economy. Also, a cashless economy leads to greater liquidity and lesser interest rates.
A cashless economy means no need to carry bulky wallets for purchasing an item. Today most retail stores have introduced electronic payment methods via plastic money, mobile banking or internet banking. It also gives a sense of safety, especially when they need to carry huge cash.
Cashless economy or digital purchasing habits help us to pay the exact amount without expecting any change. It reduces the hassle to keep or carrying change for the fringe amounts. Similarly, it also helps us maintain hygiene, especially after the global pandemic.
The digital or cashless transaction is impacting the economic growth of India in many ways. As per the study reports, India’s growth got supported by public and private consumption in the last few years. As a result, it balanced the fixed investments, slow exports and subdued industrial activities. The everchanging payment methods by the industries are pacing up with the changing customer sentiment and business needs. Hence, innovation in this sector is a continuous process. India is undergoing the process of revolutionary changes towards modernization, especially in terms of money transactions.
Therefore, Indian citizens are whole-heartedly accepting the challenge to walk in the path towards a digital society, holding the hands of a cashless economy.