India’s journey to cashless economy

A cashless system is one in which there is no actual money in circulation. Credit and debit cards, bank electronic fund transfers, and digital wallets are all accepted forms of payment.

How Cashless payments help economy?

Cost Savings: Using a cashless system lowers the costs of printing, storing, and transferring cash.

Risk Mitigation: There is little chance that money will be stolen or misplaced. It is simple to remotely disable a credit/debit card or mobile wallet, even if the card has been stolen or misplaced. Additionally, it is a simpler and safer way to spend money when traveling.

Convenient: Going digital is likely motivated primarily by how simple it is to execute financial transactions. With the introduction of digital modes, one can skip ATM lines, conduct business around-the-clock, and save time. It is also no longer necessary for service providers to physically know their customers thanks to the development of e-KYC, as the payments model has surmounted obstacles associated to physical presence.

Tracking Spends: Spending can be easily tracked with just one click when it is done using a computer or mobile application. Users are able to successfully manage their budget and keep track of all their expenditures thanks to this.

Increasing the Tax Base: Consumers, small-business owners, merchants, and traders frequently utilize cash to avoid paying fees like service taxes and other taxes. However, in a cashless economy, where all transactions would take place through formal channels such as banks and financial organizations, the government could monitor them and take appropriate action against tax evaders. As a result, transactions will be more transparent, which will reduce corruption in the nation’s economy.

Limiting the Parallel Economy: Unlike a cash-based economy, where money does not enter the financial system, a cashless economy makes it easier to track black money and illegal activities. Since all of the records are kept by the banks, it is simple to trace and monitor suspicious activities in the case of digital transactions.

Financial Inclusion: Low-income households in India currently have access to loans through unofficial networks, such as relatives or private lenders. By requiring them to switch to cashless payment channels, this realm of informality is immediately formalized, and they are integrated into the formal economy.

Discounts: Many e-commerce companies provide substantial incentives to customers, such as discounts, cash back, and loyalty points, in exchange for their participation in digital transactions during online buying.

According to TRAI, as of September 30, 2016, 82 out of 100 Indians own a mobile phone. The evolution of the communications ecosystem has significantly lowered the prices of voice, data and smartphones, facilitating the transition to a cashless economy.

The Indian government is working hard to transition India to a cashless economy. We’re doing big things like abolishing monetization, direct power transfer, and BHIM. The aim is to streamline the economy and curb corruption. The government has agreed to a proposal to waive fees for BHIM, UPI and debit card transactions up to ₹2,000.

The government also launched the DigiDhan campaign, awarding prizes of 1-1 billion to 16 million lucky winners (users and merchants). 

To encourage behavior change and reduce the cost of digital payments, BHIM also launched a referral and cashback program where users and merchants receive cashback. Additionally, initiatives such as USSD and *99# services have ensured that non-smartphone users are joining the cashless wave. De-monetization has given a boost to e-wallet services. According to Pwc’s report ‘Ensuring a Cashless Economy’, India was a witness.
Within two days of announcing the de-monetization, he saw a 3x increase in downloads on his major mobile wallet app. 

The above data clearly represent the transition to a cashless economy. The smartphone revolution has led to the emergence of e-commerce, m-commerce and other services, including app-based taxi aggregators that facilitate digital payments for the use of various services. Value-added services such as cashback, bill payment options, loyalty points, rewards, and ease of use have proliferated such digital platforms. These developments have given rise to modern payment models. 

 

6 thoughts on “India’s journey to cashless economy”

  1. Альфред Адлер (1870–1937) – австрийский психотерапевт и психолог.
    Одним из первых поддержал психоаналитические
    идеи Фрейда и начал с ним сотрудничество в 1902 году.
    Соредактор ежемесячного «Центрального листка по психоанализу», президент Венского психоаналитического общества
    с марта 1910 по февраль 1911 года.
    С группой единомышленников вышел из Венского психоаналитического общества,
    в 1911 году создал «Общество свободного психоанализа», впоследствии возглавил новое
    направление, получившее название индивидуальной психологии.
    Основные принципы его учения о человеке
    базировались на центральной идее, в соответствии
    с которой человеческое существо представляет
    из себя единое целое, формирующееся в социальном контексте и наделенное творческой
    жизненной силой, которая проявляется в телеологичности, то
    есть в устремлении кцели, и воплощается в
    желании развития, борьбы, достижения, превосходства, компенсации поражения в одной
    сфере и успеха в другой. Исходя из этой идеи,
    А. Адлер развил теоретические положения о чувстве неполноценности, компенсации его,
    руководящей линии жизни или жизненном
    стиле, чувстве общности, социальном интересе, стремлении к превосходству.
    как работает психоаналитик

  2. Карл Абрахам (1877–1925) – немецкий психоаналитик.
    В 1901 году получил докторскую степень по медицине.
    Работал в Берлинской психиатрической лечебнице,
    затем – в психиатрической клинике Бургельцли (Швейцария), где заинтересовался психоаналитическими идеями.
    В 1 907 году познакомился с Фрейдом и
    возвратился в Берлин. В 1910 году организовал и возглавил Берлинское психоаналитическое общество.

    В 1911 году впервые в Германии прочитал
    курс лекций по психоанализу. В 1914 году был избран президентом Международной психоаналитической организации.
    В 1920году– один из основателей
    Берлинского психоаналитического института и психоаналитической поликлиники.
    У него проходили учебный анализ X.
    Дойч, М. Кляйн, Ш. Радо, Т. Райк, К.

    Хорни и другие психоаналитики.
    Осуществил исследование отношений между сексуальностью
    и алкоголизмом, печалью и меланхолией, ранних догенитальныхстадий развития либидо.

    Одним из первых внес лепту в становление неклинического прикладного психоанализа.
    Автор работ «Сон и миф. Очерки по психологии народов» (1909), «Джованни Сегантини.
    Психоаналитический этюд» (1911), «Аменхотеп IV.

    Психоаналитический вклад в
    понимание его личности и монотеистического культа Атона» (1912) и других.
    модель спиральной динамики грейвза

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