Advantages of cashless transaction speech in english
Answers
Answered by
2
As the country moves towards a cashlessenvironment after demonetisation, the initial awe and confusion have given way to a flurry of concerns. Will the emphasis on online transactions provide convenience and tangible benefits or just add to stress and additional charges?
To incentivise the move towards a cashless economy, the government has come up with a rash of discounts and freebies on digital transactions. But will these be substantial enough and, along with other benefits, counter the higher risk of identity theft once the currency notes are back in circulation? What are the gains and drawbacks of financial digitisation? Here’s a look at what may be in store for you.
ADVANTAGES OF GOING CASHLESS
Convenience
The ease of conducting financial transactions is probably the biggest motivator to go digital. You will no longer need to carry wads of cash, plastic cards, or even queue up for ATM withdrawals. It’s also a safer and easier spending option when you are travelling. “The benefits are enormous if you leave out the low-income group, which will face a huge challenge,” says Kartik Jhaveri, Director, Transcend Consulting. “For the rest of the country, it is constructive and simple.
It will be especially useful in case of emergencies, say, in hospitals,” he says. Adds Jayant Pai, Head, Marketing, PPFAS Mutual Fund: “You have the freedom to transact whenever and wherever you want. You don’t have to be physically present to conduct a transaction or be forced to do so only during office hours.”
Discounts
The recent waiver of service tax on card transactions up to Rs 2,000 is one of the incentives provided by the government to promote digital transactions. This has been followed by a series of cuts and freebies. It’s a good time to increase your savings if you take advantage of these. For instance, 0.75% discount on digital purchase of fuel means that the petrol price in Delhi at Rs 63.47 per litre can be brought down to Rs 62.99/l with digital payment.
Similarly, saving on rail tickets, highway toll, or purchase of insurance can help cut your costs. Add to these the cashback offers and discounts offered by mobile wallets like Paytm, as well as the reward points and loyalty benefits on existing credit and store cards, and it could help improve your cash flow marginally.
Tracking spends
“If all transactions are on record, it will be very easy for people to keep track of their spending. It will also help while filing income tax returns and, in case of a scrutiny, people will find it easy to explain their spends,” says Manoj Nagpal, CEO, Outlook Asia Capital. “Besides the tax, it will have a good impact on budgeting,” says Pai.
Budget discipline
The written record will help you keep tabs on your spending and this will result in better budgeting. “Various apps and tools will help people analyse their spending patterns and throw up good insights over a couple of years,” says Jhaveri. Controlled spending could also result in higher investing. If the same amount of cash does not flow back into circulation and people continue to use mobile wallets and cards, it is also likely to bring down the latte factor. This means that the Rs 10 you spent on candy or chips, or that regular cup of coffee office is likely to take a hit since you will be short of loose change and smaller currency notes. There’s a lesser chance of budgetary leaks and unaccounted for spends sneaking into your budget at the end of the month.
Lower risk
If stolen, it is easy to block a credit card or mobile wallet remotely, but it’s impossible to get your cash back. “In that sense, the digital option offers limited security,” says Pai. This is especially true while travelling, especially abroad, where loss of cash can cause great inconvenience. Besides, if the futuristic cards evolve to use biometric ID (finger prints, 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. Another plus is that you can pay the exact amount without worrying about not having change or getting it back from shopkeepers.
To incentivise the move towards a cashless economy, the government has come up with a rash of discounts and freebies on digital transactions. But will these be substantial enough and, along with other benefits, counter the higher risk of identity theft once the currency notes are back in circulation? What are the gains and drawbacks of financial digitisation? Here’s a look at what may be in store for you.
ADVANTAGES OF GOING CASHLESS
Convenience
The ease of conducting financial transactions is probably the biggest motivator to go digital. You will no longer need to carry wads of cash, plastic cards, or even queue up for ATM withdrawals. It’s also a safer and easier spending option when you are travelling. “The benefits are enormous if you leave out the low-income group, which will face a huge challenge,” says Kartik Jhaveri, Director, Transcend Consulting. “For the rest of the country, it is constructive and simple.
It will be especially useful in case of emergencies, say, in hospitals,” he says. Adds Jayant Pai, Head, Marketing, PPFAS Mutual Fund: “You have the freedom to transact whenever and wherever you want. You don’t have to be physically present to conduct a transaction or be forced to do so only during office hours.”
Discounts
The recent waiver of service tax on card transactions up to Rs 2,000 is one of the incentives provided by the government to promote digital transactions. This has been followed by a series of cuts and freebies. It’s a good time to increase your savings if you take advantage of these. For instance, 0.75% discount on digital purchase of fuel means that the petrol price in Delhi at Rs 63.47 per litre can be brought down to Rs 62.99/l with digital payment.
Similarly, saving on rail tickets, highway toll, or purchase of insurance can help cut your costs. Add to these the cashback offers and discounts offered by mobile wallets like Paytm, as well as the reward points and loyalty benefits on existing credit and store cards, and it could help improve your cash flow marginally.
Tracking spends
“If all transactions are on record, it will be very easy for people to keep track of their spending. It will also help while filing income tax returns and, in case of a scrutiny, people will find it easy to explain their spends,” says Manoj Nagpal, CEO, Outlook Asia Capital. “Besides the tax, it will have a good impact on budgeting,” says Pai.
Budget discipline
The written record will help you keep tabs on your spending and this will result in better budgeting. “Various apps and tools will help people analyse their spending patterns and throw up good insights over a couple of years,” says Jhaveri. Controlled spending could also result in higher investing. If the same amount of cash does not flow back into circulation and people continue to use mobile wallets and cards, it is also likely to bring down the latte factor. This means that the Rs 10 you spent on candy or chips, or that regular cup of coffee office is likely to take a hit since you will be short of loose change and smaller currency notes. There’s a lesser chance of budgetary leaks and unaccounted for spends sneaking into your budget at the end of the month.
Lower risk
If stolen, it is easy to block a credit card or mobile wallet remotely, but it’s impossible to get your cash back. “In that sense, the digital option offers limited security,” says Pai. This is especially true while travelling, especially abroad, where loss of cash can cause great inconvenience. Besides, if the futuristic cards evolve to use biometric ID (finger prints, 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. Another plus is that you can pay the exact amount without worrying about not having change or getting it back from shopkeepers.
Similar questions