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  • Category: Miscellaneous

    What are the benefits of cashless transactions over cash transactions for the customer?

    For example if Damodar buy vegetables from Reliance Shop by giving Rs.500, the shop owner by giving this 500 note to the farmer buy vegetables, the farmer by giving this 500 note to fertilizers shop he gets the fertilizer bag to grow vegetables, the fertilizer shop owner gives thi 500 note to factory owner to get the fertilizer bag, the factory owner gives this 500 rupee note to the factory worker, the factory worker gives this 500 note to get clothes from Textile shop, the textile shop owner gives this 500 note to Cotton grower, the cotton grower uses this 500 note to pay school fee for his son. If this rotation of money goes through cash, the same value goes to every one without any loss or gain.
    If we opt for Cashless transaction at every step, Paytm, Reliance, Mobiquick, Freecharge or our National Banks or our Private Banks in course of time or even at present start collect 2% Service charge for every transaction i.e. for every Rs.500 transaction we have to loose Rs.10. If one 500 rupee note change hands through 10,000 times Rs.1,00,000 we are paying to Paytm, Reliance, Mobiquick, Freecharge or our National Banks or our Private Banks. Is it all necessary for the hard earn money of common man or customer to loose money like this?
  • #593070
    Advantages of cashless transactions over cash transactions for the customer are as follows:

    1. The cost of money handling will be reduced.

    2. It will bring complete transparency.

    3. It will help us curb the generation of black money to some extent.

    4. It will increase the tax base as well as add to the tax revenues.

    5. Since black money is invested widely in real estates, it will reduce the property prices because of the curb on black money which would inflate the prices of real estate markets.

    6. The Reserve Bank of India had spent around 27 billion on the activity of currency issuance and management in the financial year of 2015. This could have been avoided if we introduced cashless transactions.

    7. It will lead to the universal availability of banking services for all since no physical infrastructure will be needed other than digital.

    8. Increase in efficiency of welfare programs as money is directly transferred into the accounts of recipients. Once the entire money is wired directly into a beneficiary's bank account, the whole procedure becomes transparent.

    9. Payments will be traced quickly and collected, and there will be a reduction in corruption activities, so people will no longer pay to receive what is rightfully theirs.

    10. Fake notes, which results in an enormous negative impact on the economy, can be avoided by going cashless.

    11. There would be no issues related to counterfeit currency or soiled notes.

    12. The cost of operating ATM's will be reduced.

    13. Improved speed and satisfaction of operations for customers.

    14. No more delays and queues.

    15. No more interactions to be done with the bank staff.

    16. Usage of credit and debit cards instead of cash will enable us to maintain a detailed record of every transaction done in the society, allowing complete transparency in money transfers and business operations.

  • #593071
    The author has clearly explained the advantages of how the money can be re-monetized if we opt for the cash less transactions. It is good for the economy and the person as a whole as he need not carry the wallet always and worry about liquid cash. But some shops are having the cap on accepting the limit even through cash less transactions. That means we are fifty percent cash less and fifty percent with cash transactions as of now. Moreover the fear of having charged for doing cash less transactions also going round. So people are waiting for the clear cut policy on this.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #593075
    I request Mr. Sujish and Mr. Mohan to read my question completely and answer appropriately. My intention in this question is if we pay our payments through cash, the value of hard earned money of the customer will be passed without loss or gain. But if we forced to pay through Private or government services we have to loose in the form of service charges at every time the money hands over through payment gateways. If the service charge fixed is 2% then every time we pay Rs.500 we have to loose Rs.10 as service charges. Is it all necessary for the Customer to loose from his hard earned money to some organization for nothing. As a customer you want to loose money like that? Do you think government give protection for the customers and free them from service charges in order for government to get 100% taxes?

  • #593088
    In that case, payments should be made through cash only. It is that simple! Why would one pay additional service charges by opting for cashless transactions. No individual would like to waste their hard earned money. I don't think the government would ever protect the customers and give away service charges for free of cost just to get 100% taxes.

  • #593090
    So far no bank is charging tax for cashless transactions. Some banks are charging a very less charges for NEFT transfers. Recently SBI and other banks announced charges for withdrawing and depositing money after a certain number of operations. This tax is not applicable for cashless transactions. I don't think government will try to impose tax on cashless transactions. In such case the very purpose will be defeated. Many advantages are there as listed above for cashless transactions.
    always confident

  • #593093
    The biggest advantage is that you pay exact amount, and you don't have to buy additional stuff just in case you don't have change. Also shop keeper can't sell you candies and stuff if there is lack of change. This small thing in itself can save you a lot more than anything that is out there. I'd say cashless transaction reduces expenses because it makes you think twice before you buy. Also shopkeeper is also happy by rejecting customers who usually take things on credit.

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