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2. Read the given passage carefully and answer the questions that follow:
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Government is trying to create a cashless environment in the country. Demonetization appears
to be a
stepping stone in that direction. To help facilitate this, the government has even launched its own app
BHIM' built for the same purpose. However, this poses several questions. What are the benefits? Is
drawback?
The case 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. For the rest of the country, it is constructive and
simple.
It will be especially useful in case of emergencies like in hospitals. You have the freedom to transact
whenever and wherever you want. You don't have to be physically present to conduct a transaction or
forced to do so only during office hours.
Making transactions digitally make it easy to keep track of your finances. It can also make personal
budgeting easier. It can also help in filing Income Tax Returns and in case of a scrutiny, you will find it
easy to explain everything to the taxman.
The biggest fear is the risk of identity theft. Since we are culturally not attuned to cligital transactions,
even well - educated people run the risk of falling into phishing traps. With the rising incidence of
online fraud, the risk of hacking will only grow as more people hop on to the digital platform.
The convenience of net - banking, m - banking, card or mobile wallet transaction can make you a
spenduriſt. Behavioural finance theorists say that people lind parting with physical cash more difficult
than plastic money. So, in a way, using cash actually helps us put a leash on our spending habits. Hence,
there is a good chance that going digital may disrupt your budget or at least make it more difficult to
keep a tab on your expenses.
The success of government's digitization movement highly depends on its ability to put cash out of
circulation in the economy. People will choose the most comfortable way available to them for making
transactions. So, digitization can only be successful if government makes it widespread and convenient.
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