Need of Digital Payments

As the country moves towards a cashless environment after demonetization, the initial awe and confusion have given way to a flurry of concerns. Will the emphasis on online transactions provide convenience and tangible benefits or just add to stress and additional charges?
To incentivize the move towards a cashless economy, the government has come up with a rash of discounts and freebies on digital transactions. But will these be substantial enough and, along with other benefits, counter the higher risk of identity theft once the currency notes are back in circulation? Here is a look of pros of the digital payments in the country:

a) Convenience: The ease 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.

b) Discounts: The recent waiver of service tax on card transactions up to a certain limit is one of the incentives provided by the government to promote digital transactions. This has been followed by a series of cuts and freebies. It’s a good time to increase your savings if you take advantage.

c) Tracking spends: If all transactions are on record, it will be very easy for people to keep track of their spending. It will also help while filing income tax returns and dealing with other matters.

d) Lower risk: If stolen, it is easy to block a credit card or mobile wallet remotely, but it’s impossible to get your cash back. “In that sense, the digital option offers limited security,

e) Budget discipline: The written record will help you keep tabs on your spending and this will result in better budgeting. Various apps and tools will help people analyze their spending patterns and throw up good insights over a couple of years.

Ms. Bhavna Dhruv,

Assistant Professor

BCA