Impact of cashless economy in banking sector
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It has been eight months since demonetization hit the Indian public. The country faced waves of support and complaints for all this time. It has been a period of major changes and upheavals under the Modi government. The tiresome afternoons of standing and waiting for your turn in the long and seemingly unending queues in banks and ATMs could not easily be forgotten. This is when critical minds began to ponder over the merits of all the pains the general public had to take for survival. Cash turned meaningless, and online transactions caught speed. The direct and thoughtless conclusion was the curb of corruption and black money. A huge sum of money was liquefied, and Indian economy was wealthy in a short span of time!
Modi government has also been functional towards another of its economic ventures; that being the campaign for Digital India. November 8, and the days that followed, provided the Indian public with a taste of going cashless. Now, when it comes to a complete swap of cash by digital money, it needs a critical mind to delineate the merits and demerits of the same! Can digitization help us save our money? Or would the public suffer an unavoidable loss? The government seems sure enough in the former direction.
It should be noted, that the government has to pay a heavy sum of money to print the cash and make it available to Indian public. For printing money tops the priority list for the government, often, does it have to rely on exports, for the huge sum of money. This in turn, lowers down the value of INR. Critics suggest, that going cashless would help India save around a 70,000crore that goes down into printing of cash. Handling of cash has various other expenditures. But, corrupt minds are always ready to take all the pains in the world to play in black! Going cashless brings all their money into the Indian economy. This might make the government reduce its taxes levied on the general public. This is where GST comes into picture.
To mention other advances made by the government, reduction of the MDR (Merchant Discount Rate) levied for online transaction services would help the general public save a certain amount of money. The public might no longer hesitate in making online transactions. This further encourages the public to go cashless.
GST is another venture towards the reduction of taxes. Instead of paying a number of taxes at different points, GST aims towards ‘one nation-one tax’. A rumor has spread its wings around the country that says: the government might limit the cash withdrawals. Although, this is a statement made by the critical minds of the country, if taken, this step would turn out to be a major one in the direction of making India a cashless economy!
Modi government has also been functional towards another of its economic ventures; that being the campaign for Digital India. November 8, and the days that followed, provided the Indian public with a taste of going cashless. Now, when it comes to a complete swap of cash by digital money, it needs a critical mind to delineate the merits and demerits of the same! Can digitization help us save our money? Or would the public suffer an unavoidable loss? The government seems sure enough in the former direction.
It should be noted, that the government has to pay a heavy sum of money to print the cash and make it available to Indian public. For printing money tops the priority list for the government, often, does it have to rely on exports, for the huge sum of money. This in turn, lowers down the value of INR. Critics suggest, that going cashless would help India save around a 70,000crore that goes down into printing of cash. Handling of cash has various other expenditures. But, corrupt minds are always ready to take all the pains in the world to play in black! Going cashless brings all their money into the Indian economy. This might make the government reduce its taxes levied on the general public. This is where GST comes into picture.
To mention other advances made by the government, reduction of the MDR (Merchant Discount Rate) levied for online transaction services would help the general public save a certain amount of money. The public might no longer hesitate in making online transactions. This further encourages the public to go cashless.
GST is another venture towards the reduction of taxes. Instead of paying a number of taxes at different points, GST aims towards ‘one nation-one tax’. A rumor has spread its wings around the country that says: the government might limit the cash withdrawals. Although, this is a statement made by the critical minds of the country, if taken, this step would turn out to be a major one in the direction of making India a cashless economy!
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