Cashless is characterized by the exchange of funds by cheque , debit or credit card, or electronic methods rather than the use of cash.India supports it because it has n number of benefits . A cashless economy certainly presents benefits that will boost our economy a lot. India’s black money pile is unusually large for several reasons. First and foremost, about half the country’s output comes from the small, informal sector, where cash transactions are the norm. Meanwhile, taxes are cumbersome to pay and easy to avoid. To collect revenue, India’s government has to rely on indirect levies such as sales and excise taxes, which are distortionary and regressive, rather than on income tax.If India goes cashless more ease can be achived.
Cashless Indian Economy
Cashless transfer is nothing but electronic/digital transaction of your capital with the help of net-banking, credit card, etc. You can shop, pay your bills, schedule transactions and manage all your finances from home, office or wherever you are with your smart phone. It not only ease our life but also authenticate and formalize our transactions.
You use the cashless commitment just like a cash. However each transaction made by you marks its footprint on whosoever has possessed it for the number of times. It gives a tool to the income tax department for all the transaction a person has done. So accounting for his tax deliverable becomes more transparent and it becomes difficult to hide it.Here are few of them.
- Curb Black Money:
- a)The govt will get the tax money that would have been evaded if black money was to exist.
- b)Curbs illegal activities altogether. A large part of black money is generated in illegal trades (like selling drugs). Without a payment system, illegal trade might become difficult.
- The government spends a lot of money in printing and reprinting (to replace soiled ones) notes. It might sound like a meagre expenditure, but considering there are billions of notes in circulation, this amount accumulates and can be significant.
- Avoid the threat of counterfeit currency: Fake currency can harm the monetary policy of the country adversely, besides being illegal and almost equivalent to theft in my opinion. A cashless economy would be immune to this harm.
- No cash means safety from burglars.
It’s easier to keep a trail of transactions when money is exchanged online.In a cashless Indian society, people would be forced to remove savings from under their mattresses and keep them in the bank. Also, hawala transfers can’t be made without paper currency. This does two things:
Advantage for the Cashless India society
- Reduces the circulation of liquid money.
- The black money or parallel money cannot be able to sustain.
- Easy to handle.
- The transaction process and purchase will made easy.
Advantage for the Cashless Indian Government
- The government can control the financial transactions in the society.
- More transparency and easy to track money laundering and other such activities.
- Helps to eliminate counterfeit currencies.
- If the government finds a person guilty government can easily block his/her transaction.
Hopefully we served the best information which you were looking for. We will update this site time to time so stay with us.Stay tuned for more updates.