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:
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
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