Can we go ‘cashless’, how?
In simple terms, transaction of amount from person to person or between organisations without any cash or bill but through credit cards, cheques, bank transactions, apps, wallets or any other electronic system is known as cashless-transaction.
The Central government has a dream to free-up India from cash transaction. Dhase village of Thane district of Maharashtra already following the cashless transaction system with the help of Bank of Baroda and a SHG. Even in South India Ibrahimpur village of Telangana state is known for cashless transaction. Recently you might have read news about a paper seller in Kadur who is following cashless transaction to support the government. But the government believes that all 5 lakh villages of the country can do it.
There are challenges. If you want to pay a bill through online transaction, few officials tell that it becomes difficult for them to pay receipt. Few even put board that they don’t entertain debit cards or swiping machine is not working. However, now atmosphere is changing.
Benefits of cashless transaction
- Problem of theft, robbery, fake note, losing the cash, cheating are less.
- We can maintain accuracy in the transaction as amount will be paid from the bank.
- All legal hurdles which appear in business can be avoided.
- Transaction is transparent.
- Everyone can inculcate commitment towards sincere business.
One aim- many ways
- Payment through cheque: This is very simple and already being followed by the people. We have to write the concerned person’s name and amount in the cheque with a signature. When amount is big, usually this old method is followed.
Demand draft: This is also one of the old methods which still in use for cash transfer, usually when amount is big. One can take demand draft from the account and transfer it to any corner of the country.
- Online transaction: RTGS (Real Time Gross Settlement) and NEFT (National Electronic Fund Transfer) systems help for online cash transfer. With the help of internet banking, we can handle our bank accounts online. This is a simple and safe way for fund transfer and we can get reply from the banks within seconds. By giving cheques or slips in banks, one can perform RTGS or NEFT.
- Debit cards/ Credit cards: Banks provide cards for transactions which can be used in ATMs also can be used for cashless transactions.
Debit cards: Debit cards can be used to utilize the money which is in our account.
Credit cards: With credit card, we can spend more money than in our account (according to the limitations of banks) and later we can credit the amount to the banks. Both cards are used with the help of swiping machine, which would ask PIN or finger print.
- Mobile wallet/mobile app: With the help of few interface applications, cashless transactions can be done using smart phone and internet facility. There is no need of credit card or debit card internet banking password. If you transfer money to mobile wallet using IMPS, later you can pay from there.
- E-wallet: Through few interface applications in the internet facility, you can transfer money. Here mainly your credit card or debit card link should be registered under e-wallet. One who gives the service should also use e-wallet for business. Here transfer of money is very easy.
Few examples for e-wallets/ mobile wallets: PayTm, Momoe, PayUMoney Mobikwik, Citrus, State Bank Buddy, Citi Master Pass, HDFC Chillr, Lime, Free charge, Airtel Money, Vodafone-m-pesa, Oxigen Wallet, Venmo, Paypal, Google Wallet, Facebook Messenger etc.
- United Payment Interface (UPI) App: Smart phones are enough for financial transactions. Here we can enter the information of person to transfer money. There is a need of current account for the purpose.
Eg: BHIM App, Axis Pay UPI App, Union Bank UPI App, PNB UPI etc.
- Aadhar Enabled Payment System (AEPS): This works as a micro ATM. Here cash transfer can be done with the help of a smart phone and thumb impression scanning. For this, every Aadhar number should be submitted to the bank.
- Unstructured Supplementary Service Data (USSD): With this bank transaction can be done without the help of smart phone and internet connection. This is of mobile banking service and banking transaction can be done by dialing *99# from any mobile, in any bank.
All above systems are simple, however people can opt any one according to their need or facilities available. Internet facility available in the aria, knowledge about e-wallet, mobile- wallet, mobile banking, importance given by the government departments to online transactions, involvement of private vendors, protection for the data, methods to solve problems are also considered. Along with fear, there is lack of awareness about cashless transaction among rural people.
Awareness can be improved by:
- Organising awareness programmes through self-help groups. Street plays can be used.
- Government departments should cancel the cash payment step-by-step. Few payments must be done online.
- In city municipal council, town municipal council and gram panchayat limits vendors should be motivated to use swipe machines. Machine should made mandatory while giving the license itself.
- Improving the knowledge about technology among general public. Training should be given on the use of simple mobile apps through Financial Literacy Centres.
- Lead banks and local self-help groups should motivate people to open bank accounts and get cards.
- For mobile banking, good internet facility is must. So effort should be put on increasing the capacity of internet in rural areas.
Most of all, we should open heartedly welcome the positive steps taken by the Central government to curb corruption and circulation of black money. Let’s join hands with the government for the development of the nation. Let’s make our coming generation proud by switching over to cashless transaction.