An announcement on Tuesday night from our Prime Minister, Mr. Narendra Modi left the Indian citizens shocked, confused and panicked. The nation is still reeling from the effect of the Government’s sudden and bold move to scrap the currency notes in denominations 500 and 1000 with immediate effect. While it is a commendable measure in our government’s fight against corruption, black money and fake currency, it did leave the common man bewildered and unsure of his next step. The banks and ATMs being closed the next day gave rise to a chaotic situation and much of the uncertainty and panic amongst the people can be attributed to the lack of awareness about the alternatives to cash in our society. India, as an economy, is deeply cash based and that is not limited to the rural population with limited access to education or electronic facilities. Even the urban, educated mass is mostly dependent on cash transactions which account for almost 90% of all economic transactions in our country.
However, this almost unprecedented situation with a shortage of liquid cash flow might give the much needed impetus to our shift towards being a more cashless economy. It might nudge people towards embracing other forms of money and transactions. Use of plastic money, virtual wallets and electronic transfers does not only free us from the hassle of visiting banks and ATMs, the risk of carrying cash etc., it also helps the government eliminate black money and fake currencies as every transaction is authenticated and accounted for.
Today, with almost every person owning a smartphone and having a bank account, going cashless has become easier than ever before. Our unbelievably crazy schedules hardly leave us time to go to the bank and fortunately we hardly need to now. From grocery to clothes shopping, movie tickets to travel bookings and almost every other payment can be done by debit and credit cards. All you need is a bank account and a linked phone number or email id. You buy something online or from a retail store, all you have to do is swipe your card and the money will be transferred from your account directly to the merchant’s. It is easier and faster and safer than carrying and handing over and counting of cash.
Virtual wallets are another form of cashless banking which works like a prepaid account. You load it with money first and then you can use it to make payments in various places and platforms. There’s a plethora of e-wallets available, like Paytm, Mobikwik, PayU money, Airtel Money, Vodafone MPesa- just download one in your phone, deposit some money in it and you are all set. Most of these wallets have no minimum amount, you can recharge them with as less as 10 rupees.
Cheque and cash deposits and transfers are time consuming and requires us to visit our banks. But now we have options like National Electronic Funds Transfer (NEFT), Immediate Payment Service (IMPS) and Real Time Gross Settlement (RTGS). With these we can transfer money from one account to another instantly and we can do it from our homes, offices or wherever we happen to have our phones with us, which is everywhere to be honest.
So be it the sudden cash scrap or long queues in banks, you don’t need to be bothered anymore. Go cashless and stay one step ahead.
Tags: cash cashless economy india
