debate on cashless India
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In the beginning people thought that this is a great idea and the country will become corruption free. But as the time passes people are getting weary about the ban.
Huge problems and pain that they have to go through each day, do they worth it?
Is the cashless economy the way forward? Both sides, people who favor cashless economy and people who don’t are putting their arguments forward.
So this is the right time for the country to have a debate whether cashless economy is good or bad for the country.
Pros of a Cashless Economy
Let us start with advantages of cashless economy.
Positive Impact on Society
We are seeing the impact of cashless economy on the society when it comes to crime rates.
According to Union defense minister after demonetization the crime rates in Mumbai has dropped to half.
Not just Mumbai but Delhi is seeing a substantial decline in crimes related to financial motive.
Bank robbery, burglary, extortion etc are declining because of demonetization.
Attack on Parallel Economy
This is one of the most important reasons why a cashless society is must.
People who hoard money under their bed (also known as black money), people who launder money bypassing banking channels, terrorist who need money to finance their terror etc will run out of business now.
Size of Parallel economy will reduce substantially.
Financial Inclusion
Digital economy will help to enhance our current banking system. There will be increased access to credit for people who did not fall in any banking network.
Financial inclusion will automatically reduce poverty.
Increase the Tax Net
All the transactions that are done can be monitored and traced back to a given individual.
If officials from tax department smell something fishy then they can trace the money transaction back to the individual.
Hence it will be really difficult for someone to evade tax. Increasing tax net is very important for any government.
Boost in Consumption
There would be no incentive for people keeping money in the bank. So they would love to spend on things that they like.
It will help to boost consumption that is really good for any economy.
Huge problems and pain that they have to go through each day, do they worth it?
Is the cashless economy the way forward? Both sides, people who favor cashless economy and people who don’t are putting their arguments forward.
So this is the right time for the country to have a debate whether cashless economy is good or bad for the country.
Pros of a Cashless Economy
Let us start with advantages of cashless economy.
Positive Impact on Society
We are seeing the impact of cashless economy on the society when it comes to crime rates.
According to Union defense minister after demonetization the crime rates in Mumbai has dropped to half.
Not just Mumbai but Delhi is seeing a substantial decline in crimes related to financial motive.
Bank robbery, burglary, extortion etc are declining because of demonetization.
Attack on Parallel Economy
This is one of the most important reasons why a cashless society is must.
People who hoard money under their bed (also known as black money), people who launder money bypassing banking channels, terrorist who need money to finance their terror etc will run out of business now.
Size of Parallel economy will reduce substantially.
Financial Inclusion
Digital economy will help to enhance our current banking system. There will be increased access to credit for people who did not fall in any banking network.
Financial inclusion will automatically reduce poverty.
Increase the Tax Net
All the transactions that are done can be monitored and traced back to a given individual.
If officials from tax department smell something fishy then they can trace the money transaction back to the individual.
Hence it will be really difficult for someone to evade tax. Increasing tax net is very important for any government.
Boost in Consumption
There would be no incentive for people keeping money in the bank. So they would love to spend on things that they like.
It will help to boost consumption that is really good for any economy.
Answered by
9
Cashless India is a mission launched by the Government of India led by Prime Minister Narendra Modi to lower the dependency of Indian economy on cash and to bring hoards of stashed black money lying unused into the banking system. ... India has been using electronic payment systems for many years now.....
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