After the demonetization of 500 and 1000 notes, the Indian economy is still struggling for a smoother transaction in India without any problem, but the Indian government is trying to keep everything on track, but on the ground level, the challenges still exist. So, today, we will discuss cashless India challenges and benefits for businesses and consumers. We will also do a quick review on the advantages and disadvantages of cashless transactions in India.
Cashless India challenges and benefits to businesses and its consumer
Indian Government Digital Program
Digital India program is a major program of the Government of India, which has a vision for transforming India into a digitally empowered society and knowledge economy.” Immaculate, paperless, cashless “is one of the valid roles of Digital India.
According to the Government of India, while making transactions through cashless mode, the citizens of India get many opportunities to make themselves comfortable.
The government of India has started a digital payment for people to ensure that the use of digital payment can reduce cash transactions.
- BANKING CARD
- UNSTRUCTURED SUPPLEMENTARY SERVICE DATA (USSD)
- AADHAAR ENABLED PAYMENT SYSTEM (AEPS)
- UNIFIED PAYMENTS INTERFACE (UPI)
- MOBILE WALLETS
- BANKS PRE-PAID CARDS
- POINT OF SALE (POS)
- INTERNET BANKING
- MOBILE BANKING
- MICRO ATMs
How PM Modi plans to promote a digital transaction towards a cashless economy
Prime Minister Narendra Modi’s master plan has not been disclosed at one time. The Government of India is implementing the guidelines wisely so that all process can go smoothly, although most people do not think that the Modi government is helping people through Cashless India.
After the demonetization of 500 and 1000 rupees notes government encourages to go for the cashless transaction. The motto of digital payment is to make India cashless. Cashless India is still a hot discussion in India. Companies still feeling challenges to create a cashless transaction in business.
Modi Government is working on this cashless India scheme.
The Government of India has launched some schemes that are actually trying to help people use cashless transactions. For example, all railway travelers can cover a free accidental insurance up to 10 lakh, if they purchase the ticket online. The government also runs some programs for the businessman to encourage digital payments.
Prime Minister Modi did everything to promote digital payments, but India is a big country so, it will take time to execute everything properly.
Cashless India challenges and benefits for the people and the businesses
Cashless India challenges and benefits can measure from its usability. India is still a big user of a cash-based transaction. As the mentality of the cash-based transaction is more trustworthiness than the cashless transaction in India. There is a major portion of India still believe in the cash-based transaction. The reason is they are not fully aware the benefits of the cashless transaction, the small merchant still don’t accept payment through digital mode and lack of knowledge and illiteracy also the major block road to stopping towards cashless transaction in India.
If we talk about cashless India benefits then there is no doubt that cashless transaction is smoother than the cash-based transaction. It will help businesses to set up more secure payment option and of course, it is convenient due to its fast processing. It really doesn’t require your physical appearance. You can make the payment to anyone from anywhere. There are lots of benefits of using digital payment.
Problems of the cashless transaction according to small businesses
The problem of cashless transactions has not yet been resolved in India. The government has always been trying its best to make cashless India. However, small business still doesn’t want to adopt digital payment and at the same time consumers also not interested to pay through a cashless mode of payment. In this case, the problem is still there in a cashless transaction. Due to retail shopping, nobody feels comfortable to make a payment through the card or e-wallet. Especially the ‘Thelaas’ and small shops do not use POS to take payment digitally. In fact, our Cashless India program has not been designed for small businesses. ‘Thelaas’ and small stores still have many challenges. The problem of cashless transactions in rural areas is very high compared to metro cities.
Cashless India online promotions are encouraging people to be part of a cashless society
Cashless India Online Promotion is encouraging people to be a part of cashless society and they are promoting most of their products. As I mentioned above, the Indian government has made a great alternative to digital payment to remove cash transactions.
Advantages & Disadvantages of Cashless Transaction in India
- The first and foremost advantage of Cashless Economy is freedom from cash. You do not need to keep the cash. You can go anywhere freely without any tension of losing your cash from any pickpocketer.
- Another advantage of a cashless economy is that it will be easy to track all transactions, but there is no way to track the cash-based transactions, from where the money is coming and where the money is going. Cashless transactions are easily trackable.
- Another advantage of a cashless economy is that it is easy to track black money and illegal transactions.
- If the cashless transaction can be channelized well then the chances of reducing illegal tender of prostitution, money laundering, drug trafficking and much more…
- If cashless transactions begin, illegal transactions will be prohibited in prostitution, money laundering, drug trafficking and other wrongful activities.
- Security is a matter of concern in cashless transactions; however, India always tries to ensure that priority in security is done especially in the banking sector.
- Most people are not literate in technology; therefore, in that case, it is difficult to use cashless transactions.
- In some cashless transactions additional charges are applicable, whose customer is not aware.
- If you are not alert in your internet security then there may be a possibility of hacking.
- Less awareness about digital transactions, a hacker can try to manipulate your important banking details.
Using cashless transactions is good, easy and very convenient, but you should also know more about how digital payments work. If you are not alert on the security measures of your banking details, then it can destroy the entire financial balance.
After the easy flow of cashless transactions, this will give you an additional benefit, and it will be good for the country too.