Demonetization of large currency notes has forced people to deposit their money to bank accounts and opt for the cashless payment methods.
Depositing money is easy but are people in India ready for a cashless economy? Yes! According to Wikipedia, India’s literacy rate is 74%. It is clear that 26% of the population can’t read or write in their mother tongue.
One more interesting fact is that only 35% of the population have internet access. In 2013, only 15% population of India used the internet. Within 3 years, India has witnessed 20% increases in internet users. The number is increasing at rapid pace.
Considering the 74% literacy rate, it is very unlikely that all members of a family are illiterate. Hence, cashless payments shouldn’t be a headache.
Benefits of cashless payment
Tracking expenses are easier
Once you have a bank account, every transaction you make with the debit card will be highlighted in the bank statement. You don’t have to write down your expenses in a book.
Business owners can easily link their bank accounts with accounting software to track cash flow.
Your money is safe
If you buy an expensive product from a shopping mall or eCommerce portal, you don’t have to withdraw money from the bank account and carry it to your home/shop if you opt for digital payment option. A person using cashless payment method for completing offline or online transactions is unlikely to be robbed.
Cashless payments are quicker
In cash payment, the cashier verifies notes one by one before they hand over the payment receipt. In the case of digital payment, the money deposited in your bank account is authentic.
The cashier will swipe your card or make you transfer money through a wallet app. Both these cashless payment methods are quick.
Top 4 best Cashless payment methods in India
1) Mobile banking
Do you know? You can transfer money or make payments with your mobile phone without the internet connection.
All major banks allow their customers to enable mobile banking for their accounts.
Once you enable this feature, the banks will provide you with special USSD codes. with which you can transfer money, check account balance, etc.
All you have to do is dial the special number with your registered phone number and follow the instructions displayed on the screen.
2) Wallet apps
If you have a smartphone or tablet, install and use the best wallet apps. The applications are secure. They are easy to use and support all major banks in India.
3) Debit or credit card:
As India is going cashless, shops have begun to accept cashless payment with a credit or debit card.
You must carry your debit or credit card as well as a phone with wallet app to the shopping mall or your favorite store.
Once you finish shopping, visit the billing counter and hand over your card to the cashier.
The cashier will swipe your card and will provide payment receipt to confirm that the transaction is complete.
4) UPI App
UPI aka Unified Payment Method is a new method of payment launched by the Government of India.
If you’re a customer of UPI enabled bank, download the UPI app for your bank and begin using it.
The biggest advantage of UPI payment is that you don’t have to log in to your bank account or enter credit/debit card details to complete a transaction.
One more advantage is that the money transfer takes place in real-time. A single app gives you access to your different bank accounts. Isn’t this cool?
The UPI app lets you receive money from any person. You can also use it to make payment to a merchant.
Conclusion: The demonetization move by the Government is expected to have a positive impact on the economy. It will reduce money laundering and circulation of black money significantly.
You should embrace one of the above mentioned cashless payment methods and support the government.
Image source: Financial Express