Pros of Cashless economy in India

 As discussed in the previous blog the "Cashless economy" In india. It is defined as a mode of transaction which is carried out via digital means like credit card, debit card, mobile apps like BHIM UPI, net banning etc. The ease of conducting financial transactions is probably the biggest motivator to go digital. 

Now I am going to highlight some benefits of opting the system of cashless economy. 

1.Spending done via mobile or computer applications can be easily tracked with a simple click. This allows users to keep track of all their spending and manage their budget effectively.

2.Digital transactions are completely traceable and can be reconciled.

3.Physically carrying of money will not be required therefore reducing the risk of theft. Just carrying mobile phones or cards will be required to carry out any transaction.

4.All the transactions shall be monitored and unearthed for individuals resulting in a check on tax, increased tax revenue and wiping away black money from the economy. The existence of cashless economy shall definitely lead to development of a country by collecting surplus taxes and spending them towards the development of the economy.

5.Cashless transactions shall require people to keep all their cash with banks and hence liquidity in the banking system shall increase. Liquidity of banks is of vital significance as they are important to financial system. The proximate cause of a bank’s demise is mostly liquidity issue when they fail to meet their payment and settlement obligations

6.As the number of banks in India will increase it will consequently increase employment opportunities in India. As a large section of graduates in our country go for banking jobs.