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Last updated: 29 Nov, 2016  

Card.9.Thmb.jpg Moving to a cashless economy

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Bikky Khosla | 29 Nov, 2016
The demonetization move that initially brought business activities across the country to a halt is now paving the way for a cashless economy. More and more people are nowadays going for cashless modes of payment. Value of debit card, mobile banking and interest banking transactions is shooting up. Even cobblers, carpenters and street vendors are gradually shifting to the digital payment-mode, while the digital payment enablers have come out vigorously to pitch themselves as the best solution for business. Simply speaking, a transition, from cash to cashless, has already begun in the Indian economy, and now the government needs to act as a catalyst.

Such a transition will be beneficial in multiple ways. It will be easier for the government to monitor financial transactions and thus curb black money generation. The threat of counterfeit currency will be reduced. Illegal trade activities and terror funding will suffer. In contrast, the tax base will get a big boost and the cost of managing currency operation and printing currency notes will come down sharply. The common man who, according to an estimate, loses interest worth Rs 150,000 crore annually for not keeping his money in banks, will benefit as well. Also, a cashless economy will save time for buyers and bring down costs of cash handling for sellers.

But the question is: Can India really become a cashless (or at least a less-cash) society?  What fuels optimism is that we have a rapidly expanding mobile and Internet user base. In addition, reform measures like Jan Dhan Yojana, Aadhar and GST will help the cause further. But it won't be that easy as challenges abound. Our mobile coverage is still patchy in rural areas, we lack adequate numbers of ATMs and POS terminals, and only 28% -32% of our population have access to financial institutions. Nearly 92% of our workers still belong to the unorganized sector and over 97% of our retail transactions are still done in cash. Most importantly, it is a mindset issue that most of us only like dealing in cash.

It is encouraging that the Centre has already got down to planning strategies to go cashless. According to a media report, the labor ministry has decided to organize camps to help workers open bank accounts, the food ministry has directed its officials to achieved 100% cashless working in next 15 days, and the agriculture ministry has held a meeting with fertilizer company executives to see if sales could be conducted entirely online. In addition, the NITI Aayog has planned to constitute a panel to prepare a time-frame for digital payment options in all sectors. Such initiatives are welcome but not enough. A Herculean task is ahead to realise the cashless dream.

I invite your opinions. 
 
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Common man problems
Common INDIAN Man. | Thu Dec 8 10:16:30 2016
A beggar without cash, destitute and unprivileged orphans without cash , food basic facilities, A nightmare for the poor and unorganised sector, a struggle for the middle class common man ,common small scale Farmers without agriculture and food, A few rich and the powerful Nethas will benefit - let the Modi Govt. realize sooner than later and modify their mistakes to save the nation INDIA.


Compulsion on PoS to Smallest Vendors or Enterprises
JUPITER | Tue Dec 6 11:30:29 2016
Every small to smallest enterprises must use PoS machine for payments. Govt.should make a rule that Every Grocery shop,Vegetable fruits sellers and even Medical Doctors must have Electronic media for payments other wise cancel their license (Give give them some warning period before cancelling). It will surly help.


Cashless Economy
A-man | Fri Dec 2 08:22:10 2016
Cashless dream/nightmare = one giant leap to totalitarianism; a key of full control Dealing in cash is a mindset issue? Be proud of that mindset. No, thanks.


Cashless Economy
Sharad Sarda | Fri Dec 2 04:53:46 2016
Govt should make some law for having 2/3 compulsory electronic transfer facility for all traders, consultants, etc otherwise & reduce transaction charges on electronic transfer, otherwise this will be only temporary for next 8/10 moths till cash is available again.

  Re: Cashless Economy
Vijay Goyal Raipur | Wed Dec 7 03:01:11 2016
Why Not Nil transaction Charges. If we want move of cashless economy transaction charges should be zero........... Why any merchant should pay 1% transaction charge & not pass on this as discount when he sells the goods in cash.


demonetisation
sanagapati srinivasu | Fri Dec 2 01:19:30 2016
Good move by Modi's government.


CEO's Note for Cashless India.
Harishkumar Trivedi | Thu Dec 1 20:40:57 2016
No, It is not possible to make India as cashless country.I agree with the CEO's note.


Moving to a cashless economy
Mohan | Thu Dec 1 16:58:18 2016
Government is planning to sell all its citizens to so called corporates and MNC as dictated by them.


about cashless society in India.
swapnil enterprises. | Thu Dec 1 12:30:33 2016
Big revolution start by one move.


Cashless
Well wisher | Thu Dec 1 11:26:37 2016
India is a country which does not a proper infrastructure in the most important city which is Delhi (the capital of the country ) and it is only a dream to have proper infrastructure in remote and rural areas that can benefit from cashless economy. The prime minister is screwing up the capital city because of his ego and you expect him or his government to objectively implement systems that will materialise in something as challenging as cashless economy. I have no idea what has happened to sensible Indians. Why are they so blind in Modi's love? I can only see his religious extremists thoughts taking over and dismissing objectivity. Modi is the fruit of RSS that can never benefit India but drag into eventual disaster. Wake up and stop living in the fools' paradise.

  Re: Cashless
Annonymus | Tue Dec 6 10:29:36 2016
Fully Support your Views. And what about Cheaters & Hackers? How will government safeguard us against them?


Digital payment-mode
KUMARESAN A | Thu Dec 1 10:40:04 2016
Excellent proposal, will it come soon, our India achieve more tax revenue, hereafter Indian money value is equal to UK POUND.


Cashless economy.
Vishwas Gokhale | Thu Dec 1 07:50:10 2016
It is necessary to start training to common people the education in use of casshless economy.


Moving to a cashless economy
Fred Fernandes | Thu Dec 1 07:46:43 2016
It's a very good move by the government. But the biggest problem is that the ratio of taxes collected and what the actual benefit to the citizens is abysmal. At every step of the way, government officials 7 ministers siphon money. The biggest source of corruption is the government. There is not a single minister who does not own businesses. The wealth that they amass is sinful. The move to a cashless economy should have started but banning all cash donation to political parties. But the PM & FM have avoided this step. The amount of money looted by big businesses is so huge, and nothing is being done about them. The common man is targeted with threats of raids, while all big businesses go scot-free. WHY?

  Re: Moving to a cashless economy
Friend | Tue Dec 6 10:32:03 2016
Very good thoughts. Fully agree with you


Cashless Economy
Basheer | Thu Dec 1 07:38:23 2016
This is not right time for cashless economy.We have to boost MSME sector by giving finance without collateral and monitor their growth constantly. Bank officials should take more responsibility to boots up MSME rather then simply offering the products. ( Currently they provide finance only to Big corporate without constant follow up recovery then write off the end). then the next step to offer smart phone for Village people at affordable and EMI basis and train the people to use it. Then only we can initiate the cashless economy.


Cashless Economy.
G M T Sai Kumar | Thu Dec 1 07:35:40 2016
Sir, your article is very apt and the aim of the present GOI is laudable. My concern however is the methodology adopted in process. My interactions have shown that even the vendors are able to exchange money in higher figures of INR 25,000/- when the rules speak something else. That means the fraudulent person is still able to meet his ends. The process is not fully culminating the black money issue. People's ideology should change. GOI should have cracked on heavy heads first, gearing up itself to go/ bring rule for online transactions at every counter and making online transactions mandatory. This also has obstacles, but does not point finer towards GOI's ideas, ideology and acts.


Towards Cashlee Society
S. V. Deshpande | Thu Dec 1 06:27:02 2016
I have started from my Family, my Businesses & with Staff members transacting 100 digitally. Yes, surely, we must aim for cashless society and should set a target of April 2018 to achieve it. To achieve that end, we must ; 1. All establishments, including schools at all locations must accept all fees by cheques ONLY 2. Ensure adequate cash available at Banks. Today, it is a nightmare. 3. Ensure all Malls, Multiplexes, Hotels or all those entities which requires registration from Government, should have compulsory digital transactions 4. All Go5vernment/Semi Government & Local Bodies be given a target to achieve 100 % digital transactions by April 2018 5.By April 2018, make a rule to transact any thing above Rs. 2,000/- digitally 6. Announce that by April 2018, all Currency note above Rs. 100/- be removed from circulation 7. Ensure all infrastructure such as Network availability, re-calibration of ATMs, sufficient printing of Rs. 100, Rs. 50 notes done to achieve these goals. May be Government can consider converting Notes to coins or to Plastic Notes Conduct a short courses on digital transactions at all Schools, Gramsabha, Nagar Palikas/Parishads, Mohollas, big Government colonies et & make attendance to it compulsory for all. Ensure that all Government ( including Railways, PSUs, PS Banks, etc ) Employees conducts digital transactions for everything above Rs. 2,000/- Sure, we will achieve almost cashless society by April 18. Wishing all the very best in this mission !


Moving to a cashless economy
Balraj Tanwar | Thu Dec 1 06:04:12 2016
Can India really become a cashless ... Its a very big question mark in front of Indian society because in India peoples are not well educated. and as you have mentioned that 92% of our workers still belong to the unorganized sector and that's true.More than 70% Indian villagers are still not connected with ATM and online banking. Even i would say that they have not much knowledge about that.Banks are still so far from 50% of villages. As you write that such initiatives are welcome but not enough. We should focus on education first then we can move for less cash till banking organisations touched our villagers who are standing last in ques to make India cashless country.

  Re: Moving to a cashless economy
Citizen | Tue Dec 6 10:34:56 2016
But who is listening to our views.GOI is busy Enforcing their Ideas on us.


Steps to take
Sanjay Bhosale | Thu Dec 1 05:28:54 2016
I agree with authors point. I would like to add that 1] Government should promote cash less transaction by discounting tax on sale so that small venders/ traders will be interested and attracted to to go for swipe card payment 2] Banks should not charge to Debit cards annual service charge 3] Banks should not charge for minimum balance 4] Government institution like state transport bus service, railways, electricity offices, LIC offices, Insurance offices, Airports, Road toll services, etc should start Card payment swipe machine immediately 5] Then ask private institutions like cinema halls, sports stadiums, private taxi and luxury bus services, etc for swipe card payment option with tax subsidy 6] All above places should be equipped with High speed WiFi facility (but blocking you tube and other non essential sites )to enable mobile banking 7] All people main worry is safety of E transaction


Cashless Transactions
R. N. Mittra | Thu Dec 1 05:00:59 2016
Fundamental question is - is it required . My answer is NOT AT ALL REQUIRED for common man on the street. Trade / Business etc. is ok but again the main thing is to see that all large transactions are done through banking channels and simple solution for that is ban any transactions above Rs. 10,000 in cash / by cheque only both for giving and taking. There was such a rule banning transactions above Rs. 20,000 but I do not know why stopped or not fully implemented. Cashless is just to ape west and not suitable for for our society, not required, useless and just simple Nonsense. All should oppose it.


Cashless India an outcry.
N.P.Mohanty | Thu Dec 1 04:20:59 2016
India is a country with majority of it"s people belong to tribes leaving in a place far away from places having net connectivity, no motorable roads, no banks, no post offices and moreover no education and still they give thumb impression when needed.Therefore, this situation needs to be addressed.


Good Start
Kiran | Thu Dec 1 03:54:25 2016
I think it is good start to develop our economy, no doubt it will face a number of problems in unorganized sector but if it would not start then it can never be changed so every Indian should give his/her support to handle the situations and let's work like a helping hand to develop our economy our country, before this decision did our economy reforms ever like today? i think this is the only way to get rid of black money.


Education sector
P Shashidhar | Thu Dec 1 03:22:29 2016
All educational institutions are to be brought under this cash less movement so that education also becomes cheaper and affordable to the common public. Government should make it mandatory for all Educational institutions to accept online payments / cheques only. This will curtail the fraudulent transactions in educational institutions and also make the institutions responsible for their income.


Cashless
Alek Couch | Wed Nov 30 19:32:55 2016
The demonetization of India is like slicing a loaf of bread with a hammer. 1. The very printing of the money will bring billions of profits to the banknote printing companies which are (of course) not Indian. 2.The move to cashless society will bring billions of profits to the banks and put the whole population under their control as the currency will be just in the form of electronic data which has no value and can be manipulated easily. 3. Big part of the small business will cease to exist due to the inability to quickly move to cashless transactions. The list can go on but the whole move is very doubtful and it is of utmost importance to summon a nationwide debate in the academic and business spheres.


Cashless economy
jayakumar | Wed Nov 30 14:44:22 2016
Internet coverage and heavy internet traffic are main problems to face coming days.


 
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