Cashless India Essay: The first step toward realizing the digital India dream is a cashless India. We will discuss the meaning of the term “cashless,” the various options for our monetary system, and the advantages and disadvantages of a country going completely digital and cashless in its economy in this cashless India essay.
The accompanying credit only India exposition in English is for understudies concentrating on in class 5 or more. In order to make this easier for young students to understand, the language has been kept simple. Young students would be able to write an independent essay on the cashless economy in India using this essay.
We are aware that cashless India is the new India, and the honorable prime minister’s decision to demonetize previously used currency has made this idea of going cashless very popular.
Even though going cashless has some drawbacks, there are also a number of advantages. In this paper, you will be familiar with all that will assist you with getting better data about the idea of India rolling credit only.
Essay on Cashless India:
The demonetization of 500 and 1000 rupee notes in India was announced by Prime Minister Narendra Modi on November 8, 2016, at 8 p.m. There were many reasons for that historic decision. Putting the foundation in place for the aspiration of a cashless India was one of the reasons.
The exchange of tangible, hard cash is the traditional method of transferring money between parties. India’s cashless economy will almost eliminate it. Given the concerns regarding the exchange of physical cash, this idea has received a significant amount of support as a result of the ongoing COVID-19 pandemic.
Going cashless has a lot of advantages. Keep in mind that everything has both positive and negative aspects. It isn’t so much that that there won’t be any hindrances of going credit only yet indeed you will generally find the ways by which you can keep these drawbacks from hurting you. All you have to do is exercise greater caution. We are all aware that it is always preferable to prevent illness.
Let’s begin by comprehending the concept of a cashless economy. A cashless economy is one in which digital or plastic currency is used to exchange liquid goods and services through the system. Online payments are considered digital currency, while ATM debit and credit cards are made of plastic.
The concept of a cashless economy has been reinterpreted thanks to the development of blockchain technology and bitcoins. The idea of bitcoins is what defines a decentralized financial system, but we won’t be focusing on that in this essay about cashless India. We are more focused on discussing the reasons why India needs to eliminate cash and the advantages that will result from implementing this new change.
You will also find information about the digital payment system’s benefits and drawbacks in this essay. You must have heard that a coin has two sides, and just like that, the topic of cashless India also has both advantages and disadvantages. This does not mean that you will not encounter difficulties when conducting online transactions. Now let’s talk about the advantages and disadvantages of a digital payment system.
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We can see the Three Main Advantages of Cashless India:
Reduction of Black Money:
Black money is money earned but not subject to taxation. People hide that money from paying taxes. An illegal tool in the economy, this black money has the potential to render a government bankrupt. Since digital money cannot be concealed, unlike hard cash, the cashless economy will ensure that there is no black money.
At the very least, there is currently no method that would make hiding possible. Digital money makes it possible for governments to keep track of all economic transactions, preserving the legitimacy and transparency of income. However, the innovation behind the computerized economy must be all around refreshed and strong.
India’s system is rife with corruption, from the ministerial to the watchman levels. Additionally, it exists as a result of our financial system’s lack of transparency. Transparency is a big problem in an economy as big as India’s. We have learned of embarrassments like the CWG or 2g tricks or the Rafale Fly tricks throughout the long term, and these tricks are a consequence of the absence of straightforwardness in exchanges.
It is regrettable that a brief essay on India’s cashless economy would never adequately address the topic because it would be impossible to cover all of India’s corruption scandals since independence. If we are able to realize our dream of a cashless economy throughout, corruptions of this magnitude could be greatly reduced. The biggest advantage of a cashless economy is that it is possible to track a transaction’s beginning and end easily.
There are Two Major Disadvantages of Cashless India:
- Online Theft:
As technology gets better every day, there are more and more instances of online fraud and cheating. In a nation with 135 million people, it is impossible to eliminate cash from the economy if the government is unable to implement robust and impossible to hack digital systems. After watching reports of online thefts on national news channels, people are still afraid to make large online purchases.
The need for infrastructure on an individual level extends beyond the infrastructure provided by the government. The fundamental requirements for making online transactions possible include a device or smartphone, data connectivity, and electricity for regularly charging the phones. These are advantages that are mostly enjoyed in urban India, but the majority of rural India still lacks them. Before even considering the possibility of India becoming cash-free, the government needs to address this first.
Infrastructure, or the Lack of it:
The entire nation by reporting the demonetization on eighth November 2016. Notes worth 500 and 1000 rupiahs were no longer accepted as payment. Black money, which was primarily used to support criminals and terrorists and formed a parallel economy, was the goal of this action. The intense deficiency of money prompted long lines outside ATMs and banks attempting to pull out money or trade notes. All of this was done to kick off the realization of the dream of a cashless India.
In this day and age, there are so many technological revolutions taking place that it is nearly impossible to find people without smartphones. Nearly everyone in the country owns a smartphone. This is the smoothest transaction ever made possible by interfaces like GooglePay, PhonePe, or Paytm. In addition, the Indian government has developed interfaces like UPI (Unified Payments Interface) for hassle-free, cashless digital transactions.
we have been asked to communicate less frequently in recent years. This is as a result of the Covid-19 infectious diseases that have spread throughout India. As a result, online payments have recently emerged as the preferred method of transaction. From our account, the money will be transferred directly to the user’s account; Simply downloading the app that you will be able to use for the transaction is all that is required.
In the end, the demonetization step became essential for the country to establish a cashless economy. It has made ready towards an economy in India that is characterized by more noteworthy straightforwardness and accommodation and simplicity in money related exchanges.