Cashless India- Importance, Implementations, Requirements and Future!

Cashless India or an economy with lower cash transactions seems to be unreal when we look at the older picture of the economy. But, the current scenario is deviating the Indian economy towards a cashless future! The Indian economy is experiencing a series of deviations after midnight of November 8, 2016. With the aim to revert back the black money to the government of India, the signs are likely that cashless is not very far!

WHAT IS CASHLESS?

A cashless economy or cashless means all the transactions carried out between two individuals will occur by payment through payment gateways or through plastic money. It is done with the primary aim of uncovering the non-registered transactions. The Indian government with another aim to promote the economy through non-cash transactions has introduced mediums such as:

• Banking cards
• USSD
• AEPS
• UPI
• Mobile Wallets
• Banks Pre-Paid Cards
• Point of Sale
• Internet Banking
• Mobile Banking
• Micro ATM’s

Reducing the economy’s dependence on cash and making it more deviated towards these mediums would result in the betterment of the country and the economy.

IMPORTANCE:

The cashless economy has importance attached to it in the following ways:

• The cashless economy needs to be present as the financial year of 2015 experienced a hefty amount of Rs. 21,000 crores just on the printing of the cash into the economy
• The other need for the cashless economy is that every shady transaction that is left unrecorded will now come into the picture making India one of the fastest-growing economies in the world.
• A cashless economy is required to make the transactions more convenient for the layman rather than carrying the bulk of cash in the wallet along with plastic money.
• A cashless economy is needed to reduce the taxes that are charged by the government due to the lack of funds in the government bodies
• Cashless India is important because it will decrease tax avoidance and money laundering cases subsequently resulting in benefits for the customers
• Cashless is needed as 1 out of 7 notes present in the economy is fake which results in a bad image of the economy.

IMPLEMENTATION:

For different mediums present in digital transactions different requirements are necessary to carry out transactions in the economy. But we are going to shower light on the basic requirements if you want to deviate to a digital transaction medium

• BANKING CARDS: Banking cards are available by the bank by providing the KYC (know you the customer) information to the bank. Applying for a card and getting a pin for the same
• USSD: You should be handling a bank account and have your mobile number attached to the same. You should register for mobile banking and you will get the MPIN (Mobile PIN) and MMID (Mobile Money Identifier) for the transaction
• AEPS: You should have a bank account opened along with your ‘Aadhar’ Card information linked with it.
• UPI: For this digital service you need a bank account with your mobile number linked to it. Also, the phone should be a smartphone and a debit card to set the MPIN
• MOBILE WALLETS: Option to open a zero KYC or a full KYC wallet along with your mobile number and the application to be downloaded to your smartphone.
• BANKS PRE-PAID CARDS: For this service, a bank account should be there with a wallet or a pre-paid card and a smartphone to generate the MPIIN
• POINT OF SALE: A handheld device with a biometric reader along with a merchant bank account and internet connectivity
• INTERNET BANKING: For this type of digital service to take benefit of the individual must hold a bank account and opt for the online service.
• MOBILE BANKING: A bank account is required along with a mobile phone application of the bank and internet connectivity to take benefit of this digital service
• MICRO ATMs: This type of digital service can be used by users of low-cost devices and would be beneficial to them.

FUTURE:

The future of Cashless India looks pretty promising as the response of the country's people towards this move of the government and the support towards it is a clear indication that the government’s move is likely to succeed. The transparency in the economy will increase through the e-commerce transactions and the digital payment gateways which will increase the GDP of the economy. This will increase the creditability of the country and make a rise in investments. This step of cashless is truly going to create ripples of big success.

For the industrialists, it is a great time to integrate the cashless practices that will be beneficial in the near future. Do you want the best cashless solutions for your business? Max Vision Solution can help you with it. Let’s fix the problems demonetization caused you and be part of a better, developed, digitally equipped, and Cashless India together!